Obama crackdown on CEO pay

Yes, yhis is good. Can we also seize war profiteers' assets--and the oil companies' assets too?
They kept our energy and transport policies working for them the past 50 years...

Wilbe very hard with all The Big Business Loopholes.

The GOP pretend to care so deeply about the stimulus, when it is patently obvious and a derelict of their duty to the public, that the GOP are working furiously for the next elections and not the peoples' economic crisis looming so large at this time. Some Republican Pundits charged with this task, call the Stimulus a stinking corpse, before it is even born, instead of what it is -- a valuable work in progress for this country. Like any creation, in the early stages, it is chaos and not fully formed, such as a fetus, a painting, any work of art, and yet the artist ploughs on knowing the beauty to be eventually created. Why in the world, would some Pundits criticize the early form instead of giving support, is beyond the pale, especially when they know to publically criticize it is to get the ball rolling to derail it. May be they do not love this country more than their party affiliation! These pundits sit in their high-paying jobs, so lofty, and pick apart every little thing someone says or does, Wears...., with nothing good to say, like their word is God or gold -- as they no longer report the news but give their Opinions about the news. There was a time when we were taught as Americans, if you have nothing good to say about anyone, say nothing at all. We have lost that. These Pundits are a part of the problem and not the solution.

At this critical stage in our rapidly-crumbling economy, it would seem that the Republican Senators would do everything they can to do something, to tell the American people, I am on your side, and not always to quickly say no to the middle class and the little people; no to schools, education, infra structure, green jobs, all of which have too long been denied and neglected and Yet, always yes to the Special Interest Groups, to wars, to big oil and their tax breaks.

It is a sad fact that for average American citizens, the GOP is becoming the party of NO! We can not depend on the GOP to help us, they never have. In 2010, we will know what to do.

Rock on Angellight!
I couldn't agree more.
So, what do we do to get this thing passed? Call our congressmen! Congresswomen! (What do we call them? Depends on if they pass this thing!) Ha!

I think each and every member of Congress should take a 25%pay cut. If they do not like..get out of town!! Let's also cut the defense budget by $100,000,000,000.00.
I would also place taxes on the big oil companies who are generating tens of billions of dollars in profits each quarter while many of us are doing everything to keep from going broke.

Obama's Socialism Starts.

As a Republican, I am with Barack on this one. Could he also include an addendum that they be required to pay their federal income taxes? There seems to be a rash of that going around these days.

Why $500k - It should be at least half that much - with NO bonuses. They've gotten too much for giving too little - a greedy sense of entitlement.
This whole bailout thing is a farce - if Pres. is so angry about it, why can't we make them give those bonuses back? It's Fed/our money, not theirs to give at will. Why didn't the Gov't put rules and restrictions in place BEFORE dishing out billions? And after seeing a problem, not do it before they gave out more billions?! Fire everyone and start over.

ref
I think each and every member of Congress should take a 25%pay cut. If they do not like..get out of town!! Let's also cut the defense budget by $100,000,000,000.00.
I would also place taxes on the big oil companies who are generating tens of billions of dollars in profits each quarter while many of us are doing everything to keep from going broke.

Posted by: Doug R. | February 4, 2009 9:42 AM

25% would be great with all the Politcal Donations Congress will get out othis-

These proposals are way too lenient. I believe that ALL exec salaries should be capped at $5 million, whether they are getting government aid or not. Any planned salaries or bonuses beyond the $5 million level should be shuttled right back into the pockets of workers and shareholders. It's a better way to keep the economy strong. And no, it's not socialism, because the government's not getting the extra money.

We need to wake up and realize that concentrating wealth in the hands of a few leaves the majority of us vulnerable.

Shortsighted micromanagement is what this is...

___
Human nature 101-

When you incent something you tend to get more of it- it works the other way as well- de-incenting causes poorer results.

____
The problem isnt that execs are getting paid too much- the problem is that they are getting paid too much for poor results.

If you cap the earning potential of these banks - you can expect to get leaders that are worth 500K/year.
___
Get ready to see a mass exodus of whatever talent is left in the banking business at the exact time that we need really good people in the business...

A smart program would include and allow HUGE bonus and salary potential for execs that are able to deliver results that meet clearly defined goals-you miss the goal you leave the business. Of course that would require participation in that nasty failed 400 year old system called capitalism - a system that has provided even the poorest people in this country a lifestyle that many in the world will never have.

I agree with Obama's plan. I'm tired of reading about this ignorant executives who sank their businesses and the world economy, took bailout funds from the tax payers and are planning executive retreats (12 day retreat to Vegas for Wells Fargo exec's) and buying corporate jets (Citigroup). Then the BILLIONS they paid themselves in bonus dollars. Meanwhile, the worker bees who made no decisions that sank the corporate ship got pay freezes, no bonuses and for some simply laid off. I'd like to see some of these exec's do jail time. The decisions and creative lending products that they made are to blame for this mess - and they are rewarding themselves handsomely for it.

Rock on Obama. You have my support. Although, $500K is still too much in my book.

No Lets NOT cut the defense budget. Do you realize how many more people you will put out of work if they cut that? Where are all us engineers suppose to work? Defense is the only industry left that hasnt had massive lay offs. Also; commercial companies here hire foreigners who work for a lot less. The only place left for us Americans to work for is defense because we can get a security clearance. Dont put us on the streets to compete with foreigner engineers who live in a house with 10 other people.

They tried this at Ben & Jerry's, failed completely.

No takers.

How about a $500,000 cap on lawyers?

Yeah, Lets cut 100,000,000,000 from the defense budget and then add hundreds of thousands of soldiers to the unemployment line.

With the US Government taking over the banks and putting compensation limits on top executives running those institutions a big question arises. Are they going to be able to get top talent to run those banks? If they under pay top business leaders will got to the jobs that pay better. And we will probably be stuck with average to above average government bureaucrats running the government controlled banks instead of of financial people..

All of the people involved in this bailout have contracted the Fiscal Insanity Virus!

If I run my company into the ground, is it OK if I take a gun to my neighbor's house and force him to bail me out so long as I agree to only take a $500,000 salary? NO! It is theft! Yet this is what we're doing in this country!

The people who ran these banks, and the people who invested in them should have been allowed to fail from the beginning. The screwed up, don't force the rest of us to pay for the mistakes of bankers! If it means we have a recession, so be it. The current choice of policy is going to lead us into a depression. We're asking the same people who got us into this mess to bail us out. Why are we still listening to them?

Obama's Socialism is showing. The day we, as hard working taxpayers, fail to pony up for CEO's yachts and expensive corporate retreats is the day this country is no longer worth saving. If we can't work hard to enrich the few, then what is the use of our hard work. Joe the Plumber was right, we should all work hard to pay for the wealthiest to live better than the rest of us and we should shut up about it.

There has been alot of talk about traders at the banks and investment firms taking risk and then leaving before the losses come.
But the CEOs and others do the same thing. They bet big [like mergers] and then if it works out claim it is their brilliant work and demand a bonus. If it fails they claim it was the employees who screw up but that management needs retention bonuses so they will stay.
Ever notice how the executives are 'indispensible' and the greatest thing since sliced bread, but when they leave everyone claims it is a new day and things will be great and the former executive was really not that good and needed to go.
It is a the flip of a coin, heads executives win, tails employees loose.

Obama has no business assessing a salary cap on private businesses.. This is typical socialism at its finest.

Whats Obama going to do next? threaten jail time to any CEO that laughs at the 500,000 salary and jumps ship for a higher paying position at a different corporation?

Obama is an idiot of epic proportions.. All these CEO's have to do is get a 500,000 base salary and a 24.5 million dollar bonus..

No wonder why Obama is so fond of this "plan" he sees an opportunity to dictate capitalist corporations with his socialistic ideologies.

Obama even proposing such an idea as a 500,000 'salary cap' shows is socialistic nature and ego.

Heartburn, if they perform well, their stock options will be worth plenty, and the execs are surely holding stock and stock options. Micromanagement is a concern, but if they are receiving federal assistance, they can live with some strings.

For those who claim that this measure is 'Socialist', perhaps a short study and understanding of what 'socialism' is may be in order. The federal government has not attempted to nationalize the baks -- in fact, the stock purchased under the bailout plans is preferred stock, meaning that ownership of that stock does not give voting rights as a shareholder.

For those who see this as a slippery slope leading to government control of banking, let us recall that no financial institution has been forced to accept federal bailout monies. If a financial institution does not want to see its executives' salaries (not benefits or stock options) capped, they do not need to accept the money. After all, those who receive Pell GRants, FHA loans, SBA loans have similar limits. Why not the big banks?

For those crying socialism, this is a very unique situation. Obama isn't cappying all salaries, just for the companies that accepted bail out money (i.e. tax payers money). I'm a Republican (or at least I thought I was) and think this is only fair. Hey, if you are a CEO and making money for your employees and shareholders that's one thing. These are people that are failing. Not sure about you, but I don't get paid if I completley SUCK at my job.

Heartburn, if they perform well, their stock options will be worth plenty, and the execs are surely holding stock and stock options. .."
Posted by: mort | February 4, 2009 11:32 AM

True-but not a realistic plan- the issue isn't (shouldn't be)how much financial punishment should or should not be doled out- the issue is how to get these financial institutions that fund our economy performing well again. With this plan, how many execs with talent will jump ship to competing foreign banks OR how many talented people will now choose an entirely different career because of this ?

This is a horrible precedent as well as just bad business.

The job of running a large bank should have a very high risk/reward ratio... capping salaries essentially removes the risk and pretty much guarantees low reward..

You folks talking about socialists and socialism need to go back and read your economics and history books. You are clueless and your statements regarding socialism are inaccurate. Have any of you ever lived in a socialist country or under a socialist type of government?? I would doubt it. Sounds like you followers repeat whatever you hear on Limp-baugh or Hannity or Fox Lies regardless.

You folks talking about socialists and socialism need to go back and read your economics and history books. You are clueless and your statements regarding socialism are inaccurate. Have any of you ever lived in a socialist country or under a socialist type of government?? I would doubt it. Sounds like you followers repeat whatever you hear on Limp-baugh or Hannity or Fox Lies regardless.

Posted by: Doug R. | February 4, 2009 1:39 PM

Doug R- what would you call the bailouts and Obama threatening private citizens with a cap on their pursuit of wealth, threatening companies with a cap on their profits, or his famous "share the wealth" quote- other than socialistic?

Posted by: heartburn | February 4, 2009 1:18 PM
\
What you don't understand is this: The Executives will take whatever short term measures it takes to get their HUGE bonuses, no matter what the long term consequences. That's what got these companies in this mess. They say to themselves "I need to get my $10,000,000 bonus this year. I'll cut whatever corners it takes to make that happen. So what if it kills the company in 5 years, I want the money NOW."

We tried your way heartburn, it's nearly killed the banking system. Massive executive bonuses lead to irresponsible personal greed, NOT good corporate governance.

Massive executive bonuses lead to irresponsible personal greed, NOT good corporate governance.

Posted by: Lou | February 4, 2009 2:53 PM

These two things are not mutually exclusive- good corporate governance would be the solution for individuals who make the bad short term decisions based on personal greed. Said a different way- where has there ever been any evidence that government could manage any better? In fact, you are ignoring governments large role in all of this economic mess that we are in.
____
Executive bonuses are annoying and a symptom of the problem- they are not the cause of the problem.
____
This is an example of Obama's reflexive viewpoint that government is always the solution-

While I believe less is more when it comes to government intervention, on this issue I wholeheartedly agree that income and perks should be limited for those who participate in the bailout until the money has been repaid. A good start but It's time to do more. How about the stocks and other options that could easily add up to millions of dollars?

While it should go without saying that even a legitimate President's "ordered" $500,000 pay cap is an unenforceable intrusion into the private sector, as if that weren't enough, Obama LACKS EVEN OSTENSIBLE AUTHORITY to issue the order UNTIL HE OVERCOMES "RES IPSA LOQUITUR" BY SUPPLYING HIS LONG FORM BIRTH CERTIFICATE AND PROVING HIS ELIGIBILITY TO BE PRESIDENT UNDER ARTICLE 2 OF THE US CONSTITUTION.

Posted by: heartburn | February 4, 2009 3:38 PM

And your solution is to give the same Bank executives who drobve the companies into the ground billions of taxpayer dollars, and then to tell them to give themselves even bigger bonuses and pay. Apparent the millions they are already making was enough to make them do their job right, so throwing more money at them will solve the problem! Brilliant. You've never seen a problem that you didn't think would be solved by making the rich richer. This is an example of your reflexive viewpoint that the rich are always right, and that the government is always evil.

Posted by: Lou | February 4, 2009 4:32 PM

No- I don't want to "give" anyone billions of dollars..especially the government.

Some adult behaviour from our elected officials- including our president ( remember all of that money he accepted from Fannie and Freddie?) would be a good start...

Reasonable regulations, that are actually enforced by the people whose job it is to enforce them can be applied across the industry to prevent this from happening again- then let the market dictate winners and losers, stockholders will then decide executive compensation.

Bad government and a greedy, poorly (not under) regulated industry is the cause of this problem- throwing more money and more government at the problem is big mistake.

Posted by: heartburn | February 4, 2009 5:07 PM

How about some adult behavior from the bank execs? You'll never call for that. You really believe they deserve ,multi-million dollar bonuses and to sit in offices with a million dollars of furniture as they destroy the companies they run and take in billions of taxpayer dollars,

In heartburn's world responsibility is just for the poor and the Government, not the rich and powerful, they are above question, They are to be coddled and catered to at all times, no matter how unsuccessful they are, and how much their actions damage society at large. When they fail, it's the governments fault, or the unions fault, never their fault, and heartburn looks up at them with awe and never questions, but believes.