Obama to Limit Executive Pay to $500,000 a Year

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Obama to Limit Executive Pay to $500,000 a Year Under New Rules

By Heidi Przybyla

Feb. 3 (Bloomberg) -- President Barack Obama will announce tomorrow that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive federal rescue funds, an administration official said.

Any additional compensation will be in restricted stock that won’t vest until taxpayers have been paid back, said the official, who requested anonymity.

The unprecedented steps -- which also include restrictions on corporate jets, office renovations and holiday parties -- come amid an outcry over an $18.4 billion bonus payout in 2008 to executives. The protests have been building since October when Congress passed a $700 billion financial-rescue plan.

“People are still getting huge bonuses despite the fact that they’re getting taxpayer money, which I think infuriates the public,” Obama said in an interview tonight with CNN.

Obama and Treasury Secretary Timothy Geithner will announce the plan at 11 a.m. tomorrow.

more:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aCE.mDV6muUs&refer=home

[SlowDownFast]

1. Cops arrive after robbers gone with the booty

http://money.cnn.com/2009/02/04/news/obama.exec.pay.fortune/index.htm?postversion=2009020411%27

"Executives on Wall Street made mind-bending sums in the boom years earlier this decade. Goldman Sachs (GS, Fortune 500), which received $10 billion from the government in October, paid chief Lloyd Blankfein $68 million in cash and stock in 2007. JPMorgan Chase (JPM, Fortune 500), recipient of $25 billion, paid CEO Jamie Dimon $30 million that year."

And the rules are NOT retroactive -

"Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500) and AIG (AIG, Fortune 500) are among the financial firms that have received exceptional aid in recent months, though the new rules won't apply retroactively. "