Obama Imposes $500,000 Pay Cap for Executives at Bailed-Out U.S. Companies

catbaby

Obama to Limit Executive Pay to $500,000 a Year Under New Rules
                   


                  
By Heidi Przybyla
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                 Feb. 3 (Bloomberg) -- President Barack Obama will announcetomorrow that he’s imposing a cap of $500,000 on thecompensation of top executives at companies that receivefederal rescue funds, an administration official said.     
       Any additional compensation will be in restricted stockthat won’t vest until taxpayers have been paid back, said theofficial, who requested anonymity.     
       The unprecedented steps -- which also include restrictionson corporate jets, office renovations and holiday parties --come amid an outcry over an $18.4 billion bonus payout in 2008to executives. The protests have been building since Octoberwhen Congress passed a $700 billion financial-rescue plan.     
       “People are still getting huge bonuses despite the factthat they’re getting taxpayer money, which I think infuriatesthe public,” Obama said in an interview tonight with CNN.     
       Obama and Treasury Secretary Timothy Geithner willannounce the plan at 11 a.m. tomorrow.     
       The regulations will also curb golden parachutes,compensation packages offered to executives when they leave thecompanies.     
       The new pay guidelines won’t be retroactive to companiesthat have already taken money from the Troubled Asset ReliefProgram, the Treasury Department program to buy bad assets frombanks. Still, those companies must agree to strict monitoringand oversight, the official said.     
       The public outrage is spreading, lawmakers say, forcingObama to impose the limits.     
       “The strongest force in the history of politics has beenthe force of resentment,” said David Hill, a Republicanpollster in Texas. “It’s almost impossible for ordinaryAmericans not to feel resentful of those who appear to bemaking out well in an environment where most are not.”     
       To contact the reporter on this story: Heidi Przybyla inWashington at hprzybyla@bloomberg.net.     
                                       Last Updated: February  3, 2009  23:40 EST

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCE.mDV6muUs&refer=home

stone

this is a great idea.

Maxie

not the first step towards nationalization and won't be the last............

Taurus168

xiaobailong

ybgx

CEOs used to claim that they deserve super pay for creating so-called share-holder value.  Now we all see how negative the "value" has been...