Obama caps salaries of CEOs from taxpayer-funded companies

[Sam Spade]

Oh, links are helpful.  Sorry...

http://www.bloomberg.com/apps/news?pid=20601087&sid=azVLk.22AkLI&refer=home

[dead0man]

Perhaps we should just let these companies dissolve into oblivion.  The economy would collapse a lot further, but maybe the CEOs would learn that a respectable salary of half a million is better than not having a job or an income.

Agreed.  If companies can't remain competitive they need to die.  If the people running them suck at running them, then they need to get a regular job like the rest of us jerks.  Phuque 'em.  That's how it is supposed to work.  If it doesn't work that way and you have companies that are "too big to fail" then you make even bigger problems.

[Earth]

Removing any possibility such a company will attract talented executives. Populism at its god damned worst.

The premise you're running under is laughable. Poor, exorbitantly rich companies will miss out on "talented" execs. They should cry me a goddamned river. As long as these companies get ridiculous bailouts funded by taxpayer dollars, they should acquiesce to these demands.

[Franzl]

I would never think of telling economically viable companies that survive on their own who they should pay what amount. That's their business, of course.

However, as soon as they require government support (meaning taxpayer support), I think it's hard to make an argument that the taxpayers shouldn't have a say in how that money is spent and that it isn't wasted on excessive CEO salaries. Hey..if these brilliant CEOs hadn't gone under with their companies, they wouldn't be facing a regulated salary. Their problem.

[2952-0-0]

How about a compromise: the CEOs will be paid bonuses in stock options which expire in 5 years. Or maybe getting paid in Mortgage Backed Securities.

If they succeed in turning around their companies, they win big.

If they fail, their bonuses are worthless.

Either way, the taxpayer does not pay anything.

[opebo]

This only applies to executives so everyone else can still make whatever they want without even needing a loophole (and the minority will likely find a loophole)

Additionally, it does not apply retroactively, so if the company does not *go back* to the federal trough after the Rule is made, there is no restriction.

So, the Obama administration is going to look pretty bad when one of these banks (probably Goldman Sachs, whose notorious for this crap) keeps giving executives millions of dollars through some amusing loophole and it gets reported on by the press.

Excellent argument for nationalization.

[paul718]

This has me conflicted.  On the one hand, it's good that this will force corporations to use TARP money to shore up their capital base.  On the other hand, wouldn't the Board of Directors have a better idea of how to allocate that money, than the government?  But I suppose the fact that they're in this mess indicates otherwise. 

Bottom line, I think I agree with Dead0man...

If companies can't remain competitive they need to die.  If the people running them suck at running them, then they need to get a regular job like the rest of us jerks.  Phuque 'em.  That's how it is supposed to work.  If it doesn't work that way and you have companies that are "too big to fail" then you make even bigger problems.