Bush: Link exec salaries to performance

[Kadie]

Bush: Link exec salaries to performance
By BEN FELLER, Associated Press Writer
3 minutes ago


NEW YORK - President Bush took aim Wednesday at lavish salaries and bonuses for corporate executives, standing on Wall Street to issue a sharp warning for corporate boards to "step up to their responsibilities" and tie compensation packages to performance.

Bush's "State of the Economy" speech, delivered from the financial center of the world, was aimed at bringing his economic message out of the shadows of the Iraq war. On his second day in a row focused on the economy, the government reported faster-than-expected growth of 3.5 percent in the final quarter of last year.

snip...
"Government should not decide the compensation for America's corporate executives," he said. "But the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders."

snip...
"America's corporate boardrooms must step up to their responsibilities," Bush said. "You need to pay attention to the executive compensation packages that you approve. You need to show the world that America's businesses are a model of transparency and good corporate governance."

more...
http://news.yahoo.com/s/ap/20070131/ap_on_go_pr_wh/bush_8

[redqueen]

1. Is he being ironic?

You know... considering his performance record vs. his compensation as an exec.

[AndyA]

2. That should extend to the Executive, Legislative, and Judicial Branches of Government as well.

In other words, George Bush would OWE US money for his term in office. Somewhere in the neighborhood of, oh, say...the cost of the war in Iraq.

[napi21]

3. OH MY GOD!!!! I think I agree with Shrub! FIRST TIME!

I've been saying Exec comp S/B tied to performance for years now! What in the world prompted himto agree with ME????

[Little Wing]

4. I wonder how he'll react to having $0.04 on his paycheck

[radfringe]

7. $0.04 on his paycheck ???

no - his "paycheck" will be a bill for the deficit that he owes us. It's OUR money after all

[Virginia Dare]

5. Including his...

he owes us about 50 billion dollars now.

[EstimatedProphet]

6. Then why would he get ANY MONEY AT ALL?!?

[stopbush]

8. Looks like * owes us a HUGE refund on his salary! eom

[CrazyOrangeCat]

9. Hey Lil' Prince Chucklenutz!

:puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:
:puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:

[antigop]

10. Don't get suckered in by this -- here is what's up

>>
"Government should not decide the compensation for America's corporate executives," he said. "But the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders."

In effect starting last month, the rules give investors access to clearer and more detailed information from public companies on their top executives' pay packages and perks. Their impact will become apparent as corporations begin issuing 2006 annual reports.
>>

The Senate is looking at curbing executive compensation by adding an amendment to the minimum wage bill. Bush doesn't want legislation-- he wants the boards to voluntarily reign in executive comp.

<edit to add> He just wants more disclosure on annual reports --NOT LEGISLATION.

http://www.forbes.com/business/2007/01/29/senate-deferred-comp-biz-wash-cx_bw_0129congress.html
>>
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Ripples are spreading through Congress and across corporate America as the Senate prepares to take up two subjects very dear to top executives--compensation and taxes.

A Senate amendment to the minimum wage bill designed to provide tax breaks for small businesses contains a critical provision that aims to curb the amount of money executives can defer in order to avoid taxes.

The provision would cap some deferred compensation for executives, at either $1 million annually or the average of the previous five years compensation, whichever is lower. Those who go beyond this cap would be subject to a 20% tax and penalties.
>>