Obama wants to impose a $500,000 pay cap on executives whose firms receive government financial rescue funds. What are your thoughts?
by 
Scifisuz
ANSWERS: 27
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I think it's a great idea.
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Well, well, he is doing something good for a change.
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Great idea but I bet they find a way around it.
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They will take their toys and go home in a snit. And then we'll be sorry!
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What do I think? I suspect we're slowly backing into socialism.
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He is handicapping the firm but almost giiving a rockie CEO a decent salary everyone will max. at that rate.
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Seems rather generous but I guess you have to be realistic.
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On the whole, and in principle, I think it is a good idea. I have a couple of nagging worries though: 1. Will talented folks move to positions where they can make a lot more money? After all, these executives are responsible for restoring the good fortunes of troubled companies. If I were really good, I might leave my $500K salary at AIG to go and work for several million at a successful company that is making money. (Somebody has raised the possibility of awarding stock that can only be cashed if and when the money has been paid back.) 2. Will attention be directed towards inventing work arounds rather than focusing on rescuing the company? 3. Some have suggested that executives may decide not to take rescue funds because their compensation will be reduced. And bankruptcies may result. So, you asked for thoughts -- and this is what you get from me because I do not really have a definitive answer on this interesting and difficult question. My reservations do not detract from the fact that I believe that fat bonus packages awarded to executives of companies that are receiving government money are scandalous.
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Put the deal on the table. Companies in trouble can decide to take the helping hand AND the limitations it comes with or go it alone. I sure don't want to see another $18 billion in taxpayer money paid out as bonuses to a tiny handful of executives who have driven their companies off the edge of the cliff.
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I agree 100%. But it needed to be clear with no loopholes. It needs to say "No employee and/or executive of any company partipating in the TARP program or any other government rescue plan may recieve more than $500,000 in salary, bonuses, stocks or any other pay incentive until such time as all moneys have been repaid to the US government. If any company is found to be in violation of such order then all money must be immediatly paid back and such company shall never again be eliable for any Rescue in the future. All members of the executive board for the company shall face criminal charges of tax fraud for overpayment of any employee/executive and the employee/executive who recieve overpayment shall also face criminal charges for tax fraud.
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too little too late unless he plans on another huge bailout in the near future.
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It is about time though the cap should be more like $200,000 per year.That is a good amount of money for the job they do.
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I think private companies should never receive taxpayer funds. It's unconstitutional, ineffective, and it leaves the door open for all sorts of gov't meddling in private affiars. Well, sort of like having the gov't tell a private firm what they can pay their exec's.
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If our tax dollars are paying for the bailout of these companies, it should be used to fix the problems they were intended for, not lining the CEOs pockets.
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What a refreshing change in policy! This will cause some CEO's who mismanaged their companies to be quite ticked off! It's about time for some accountability.
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The government should stay out of the affairs of the private sector. The government should not have enacted laws and regulations that caused the problem. The government would not have to bail them out if they had not contributed greatly to their failure. A business allowed to operate in a capitalist environment should be allowed to survive or fail on its own merits. Due to government interferance this natural process has been corrupted. Now the very people who caused the problems are saying they can fix them. The blame here should be being placed on the individuals who drove liberal socialist policies and caused this, going back for decades. Further government intervention just makes it worse.
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I think it's generous.
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I think nobody should earn more than $300,000 a year. It's simply not needed or justified. And why on earth should these top executives, who basically do no real work whatsoever, be paid more than a good teacher, or fireman or police women? Those are the sorts of people who should be at the top of the pay scale, not CEO's, politicians and actors.
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If there is anyone out there who actually needs more than a $500,000 salary, then that person should be euthanized.
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It's a popular move that won't have a huge effect besides pissing off the people in charge of turning the economy around.
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It will be good when Obama ALSO restricts pay to Congressional members and Cabinet appointees to $40,000/yr. With no extra income from Lobbyists,or other special interests.
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The government is just another investor. They shoudln't be given any more power than any other large stock owner. It's a bad idea. The high level execs of those 'in-trouble' companies will leave and the companies will be run by third and fourth tier execs.
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Hopefully my wages will be capped at 1/2 mil. I'd retire.
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What the heck took so long? They take taxpayer money and have the nerve to spend it on bonuses, parties and million-dollar office renovations not to mention the potential purchase of a $50 million corporate jet. Heard that some of these banks are now getting the message..B of A is selling some of its corporate jets. Geez louise these people are really dumb aren't they? Begging for funds to stay afloat and promiscuously flaunting their immoral use of it. Personally it disgusts me..I find such people useless..rich, but useless. :(
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Well while I think is a goodthing to help slowdown those insane pay packages.I think by doing to all of them in some way hurts the ones that are making money.
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A turnaround expert gets a lot more than that usually, because they will help the company make millions. Most of the really good turnaround experts will pass on such a deal.
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This is a great idea - and the h*ll with those discusting bonuses. Someone please tell me how a company that looses money can afford to pay bonuses! Bonuses are to celiberate great performance during boom times - not bad performence during a loss. These executives are a sick - money grubbing lot of greedy bastards & bitches - and I say to h*ll with 'em!
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