Obama caps executive pay tied to bailout money

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By JIM KUHNHENN, Associated Press Writer

WASHINGTON – President Barack Obama on Wednesday imposed $500,000 caps on senior executive pay for the most distressed financial institutions receiving federal bailout money, saying Americans are upset with "executives being rewarded for failure."

Obama announced the dramatic new government intervention into corporate America at the White House, with Treasury Secretary Timothy Geithner at his side. The president said the executive-pay limits are a first step, to be followed by the unveiling next week of a sweeping new framework for spending what remains of the $700 billion financial industry bailout that Congress created last year.

The executive-pay move comes amid a national outcry over huge bonuses to executives heading companies seeking taxpayer dollars to remain afloat. The demand for limits was reinforced by revelations that Wall Street firms paid more than $18 billion in bonuses in 2008 even amid the economic downturn and the massive infusion of taxpayer dollars.

"This is America. We don't disparage wealth. We don't begrudge anybody for achieving success," Obama said. "But what gets people upset — and rightfully so — are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers."

more...

http://news.yahoo.com/s/ap/20090204/ap_on_...t_executive_pay

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Related - http://www.visajourney.com/forums/index.php?showtopic=176570

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Related - http://www.visajourney.com/forums/index.php?showtopic=176570

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Terrific

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Obama's Salary Cap Could Seriously Hurt New York

President Obama's Wall Street salary cap may be well intentioned and it certainly taps into public sentiment, but it's a killer for New York.

"Without the talent of Wall Street to bring us back into a position of leadership in the global economy, we're going to be in bad shape as a world economic power," said Kathryn Wilde of the Partnership for New York.

Wylde says the Obama salary cap will lead to a critical brain drain – China and the United Arab Emirates have already come to poach Wall Street talent. She also says lower salaries in the financial industry will mean dramatically lower tax revenues for the city and state.

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Experts said that the President's actions will make it more difficult for both New York City and New York state to come out of the recession.

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They failed already...how much of a brain drain was that?

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Finally!

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Risks in Obama’s needed pay curbs

Published: February 4 2009

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The administration proposes a $500,000 ceiling on pay at firms receiving further government support. Extra pay in the form of restricted stock or linked in other ways to long-term performance will apparently be allowed.

One cannot quarrel with the calculation. A vast new plan to stabilise the financial system is urgently needed. Resistance to it, fuelled by disgust at the idea of new handouts to Wall Street, is intense. The industry’s disdain for public opinion and evident inability under the direst of circumstances to exercise restraint – “shameful” was the president’s word – has added mightily to the political challenge. The administration had little choice.

Yet the measure has risks and drawbacks, as officials are well aware. If it discourages firms from seeking timely help, it may backfire. If the curbs are kept in place too long, retaining and recruiting people with the skills and the prodigious appetite for work that economic recovery will require may start to become difficult.

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Risks in Obama's needed pay curbs

Published: February 4 2009

...

The administration proposes a $500,000 ceiling on pay at firms receiving further government support. Extra pay in the form of restricted stock or linked in other ways to long-term performance will apparently be allowed.

One cannot quarrel with the calculation. A vast new plan to stabilise the financial system is urgently needed. Resistance to it, fuelled by disgust at the idea of new handouts to Wall Street, is intense. The industry's disdain for public opinion and evident inability under the direst of circumstances to exercise restraint – "shameful" was the president's word – has added mightily to the political challenge. The administration had little choice.

Yet the measure has risks and drawbacks, as officials are well aware. If it discourages firms from seeking timely help, it may backfire. If the curbs are kept in place too long, retaining and recruiting people with the skills and the prodigious appetite for work that economic recovery will require may start to become difficult.

Some really great NBA players have played for the league minimum just to be on a championship contender team.

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I agree, there are lots of talented middle managers out there who will gladly work for low 6 figures just to get a mention in BusinessWeek

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I agree, there are lots of talented middle managers out there who will gladly work for low 6 figures just to get a mention in BusinessWeek

...and the cap will be temporary. If they manage to turn their company around and back back Uncle Sam, they can reward themselves with a nice raise.

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They failed already...how much of a brain drain was that?

I think I could lose billions with very little training.

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Experts said that the President's actions will make it more difficult for both New York City and New York state to come out of the recession.

Heh. I kinda suspect these are the same aszholes experts that got us into this mess.

The wingnuts are surprisingly quiet on this one. Come on guys, throw us a bone here!

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"Without the talent of Wall Street to bring us back into a position of leadership in the global economy, we're going to be in bad shape as a world economic power," said Kathryn Wilde of the Partnership for New York.

Talent? If you're so talented, DON'T TAKE THE TARP WELFARE MONEY!

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He who pays the piper calls the tune.