$500,000 is not a lot of money, says manager of compensation consulting firm

[w¡n9Nµ7 §£@¥€r 123]

The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.

Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.

...

Executives at companies that have already received money from the Treasury Department would not have to make any changes.

...

“That is pretty draconian — $500,000 is not a lot of money, particularly if there is no bonus,” said James F. Reda, founder and managing director of James F. Reda & Associates, a compensation consulting firm. “And you know these companies that are in trouble are not going to pay much of an annual dividend.”

Mr. Reda said only a handful of big companies pay chief executives and other senior executives $500,000 or less in total compensation. He said such limits will make it hard for the companies to recruit and keep executives, most of whom could earn more money at other firms.

...

In a letter to Congress last month, Lawrence H. Summers, director of Mr. Obama’s National Economic Council, suggested that the new pay restrictions would apply to all companies that get Federal help.

Without mentioning a particular dollar limit, Mr. Summers wrote that “executive compensation above a specified threshold amount be paid in restricted stock or similar form that cannot be liquidated or sold until the government has been repaid.”

http://www.nytimes.com/2009/02/04/business/04pay.html

[NickD 203]

Topic of discussion on our PBS Ideals network this morning, have to pay for good help is one of the reasons they need those outrageous paychecks and bonuses, or they will go elsewhere. The good question is, exactly where is this elsewhere?

Own thoughts was with my own bank president, sure he has the authority, but doesn't even know the exact workings of his own bank, that old gal working behind the counter knew ten times as much as he did, but she is expendable. Other thoughts were, to the best of my knowledge, the highest paid doctor at our clinic, is also around that $500,000 mark, but this guy knows how to save lives, what in the hell do these bankers know? In thinking back on my corporate days, only attribute I can recall about the CEO's is that they did have big mouths and a very high ego with an extraordinary a$$ kissing ability to get there. Forget about knowledge, and if the economy was going well, a monkey could have filled that position, but when it went down, the only thing these CEO's was good for was getting a stroke. Certainly didn't have solutions, and neither to these donkey pits that got us into this mess in the first place.

My answer is to fire these idiots that treat a rooster like a lolipop as their main characteristic. Got fed up with this BS in the corporate world, and formed my own business, would like to see these idiots do that.

[w¡n9Nµ7 §£@¥€r 123]

My answer is to fire these idiots that treat a rooster like a lolipop as their main characteristic. Got fed up with this BS in the corporate world, and formed my own business, would like to see these idiots do that.

And some of those small businesses will grow into corporations and .....

[Jasman0717 9]

Waaaaaaaaaaaaaaaaaaaaaaaaah

[Dr. Obvious 49]

Reminds me of that South Park episode warning of the dangers of downloading copyrighted material off the internet.

[Danno 1,228]

These are the type of things that Obama does that scare me.

Don't we have enough problems in the market without this stuff driving them down?

[SpiritAlight 1]

Can you truly complain when you are getting welfare?

Ha!

Albeit corporate welfare.

The ultra-rich lost touch with reality a long time ago.

[Danno 1,228]

Can you truly complain when you are getting welfare?

Ha!

Albeit corporate welfare.

The ultra-rich lost touch with reality a long time ago.

When you say "welfare".. what exactly do you mean?

To me "welfare" is when a person(s) take from the producers of society with no legal obligation to pay it back, nor with any requirement to have paid-in.

If the gov't were to give say, Shell Oil a huge tax break to develop a cleaner way to refine oil (or for any reason really)... that is simply money this Corp did not pay.

Not money that they took.

Not to be confused with someone who is existing and growing their family on the public Dole.

In fact one could demonstrate that this corp actually pays workers, local tax, royalties, subcontractors, funds developments and charities etc...

Quite a bit different than typical "welfare" recipient.

Now I am not supporting any business getting off from paying taxes, I am just resisting the misuse of the word Welfare, as it's known in the American Jargon.

As for the recent Bank bailout abortion,

1. It's not free money, there is an expectation of repayment.

2. Obama and the rest of Washington voted and agreed to a 'No strings attached" loan.

Your anger and frustration is misplaced.

Edited February 6, 2009 by Danno