Obama Imposes Executive Pay Cap

it's too late anyways were all cooked when the bailout's wheels really start turning. See ya later peace.

beautiful. firmly believe that no one should get paid more than the president. YOU DONT NEED more than 100k a year to be happy and rich. why should some people get paid 10 mil a year when if they only got paid 200k then hundreds of thousands of people would not be in poverty

Cap
An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM). Also, an OTC derivatives contract consisting of a series of European interest rate call options; used to protect an issuer of floating-rate debt from interest rate increases. Each individual call option within the cap is called a caplet. Opposite of a floor.

????

Could someone explain what this means? as it pertains to a taxpayers benefit?

They'll figure out a loophole.

this is the first thing he has done to cool the american people. but is it full of back doors? i supported obama with great teeth clenching. we he come through or will this be the biggest divider in American history?i fear that without success that this could cause bigger problems, only because people are already at there wits end, i dont think we can take much more.

JUSTICE HAS BEEN SERVED! speak softly but carry a big stick. dishing it out with a fair and steady even hand; swift and sure. to be continued...in the following 86 days still to come.

Wait, am I missing something? They got the stimulus package, gave themselves all bonuses with it, and are now being told they can ONLY have so much per year as a salary? Wouldn't the restriction on their salary almost be a joke or am i missing something?

The government regulating wages is akin to socialism. Once you start, where does it end. The bailouts themselves are akin to socialism, nationalizing banks and insurance companies. The correct way to handle the situation is to let those that couldn't keep up fail, that is capitalism, the survival of the fittest. If they spend their money wisely, they survive. If they are sucessful, they prosper and should reap the rewards. If they spend foolishly they should suffer the consquences. Nationalizing industry and regulating wages smacks of communism.

“ It should be stressed...that a position does not bring power and prestige because it draws a high income. Rather, it draws a high income because it is functionally important and the available personnel are for one reason or another scarce. It is therefore superficial and erroneous to regard high income as the cause of a man's power and prestige, just as it is erroneous to think that a man's fever is the cause of his disease... The economic source of power and prestige is not income primarily, but the ownership of capital goods (including patents, good will, and professional reputation). Such ownership should be distinguished from the possession of consumers' goods, which is an index rather than a cause of social standing. ”

—Kingsley Davis and Wilbert E. Moore, Principles of Stratification

Ha.

The compensation system for senior executives has little to do with their performance. Instead a compensation committee is appointed to survey the pay scale for similar positions, in similar businesses. Then the offer is scaled up and presented. All executives thus benefit across the board because each and everyone is compensated based on recommendations by the committee. If the last set of buffoons that have lead the business world represent the "best and brightest", then we really are in trouble.

This insures that any company that takes Bailout money can not hire the best and brightest they will be just like the goverment and schools and be stuck with the second and third level talent.The only thing sadder than what Obama and the other Marxist in our goverment are doing is the blind support they recieve here and around the country I suppose the insepent anti capitalism and anti amercan tone of our edjucation professionals is to blame.

I would normally reject this idea, as a step toward socialism. However not this time. Senior Executives in the U.S. have produced a "good ole boy" system that permeates most publically traded businesses. They went to the same schools, they belong to certain clubs, and they socialize on a regular basis. However, the most disgusting trend has been to sit on a Board of Directors and approve compensation plans for their buddies. This one fact has driven executive pay to outrageous levels that clearly have nothing to do with the health of the companies that these bloated fat cats run.

They should get a cap and a turn in the public stockade.

Strictly a political ploy on Oama's part, as is everything he does. Pretty scary slippery slope when the government starts regulating the wages of private citizens, however. If you don't like the way they spend the money, don't bail them out. There's the solution to that.

It really is about time this type of government fiscal policy is put in place. Its a slap in the face of workers for a corporate CEO to go and beg congress for money when they themselves have given up nothing for the sake of their respective companies. Thousands lose their jobs and then they show up to their fiscal hearing in a private jet and $3000 suit.I believe that it is the responsibility of these corporate CEO's to make sure that the company is fiscally sound. For them to sacrifice the jobs of their employees without even giving up a couple thousand dollars of their salary is purely selfish and should be completely illegal. The fiscal irresponsibility and greed by major companies have contributed to our economy's dire straights. This and many more fiscal policies need to be put in place if we have any hopes of fixing our tragically skewed economy.

this makes no sense the banks and financial institutions getting "bailed out" are the same ones who own the government, and the same ones who fund ANY election. Look to see who financed Obama and McCain they just pull the strings to the puppets below.

I think that this should have been done a long time ago..Making more money than the president is ridiculous..same thing with athletes..Making millions and millions of dollars for sitting in a chair telling everybody else what to do or for throwing and catching a ball..Think about how much money could be back into the community and the nation if there was a pay limit on corporations and athletes..

we applaud the common sense approach & the road to balance.

I still say Congress should outlaw financial gambling-derivatives, options, futures, swaps.

Otherwise we'll be in this mess again one day.

Enter reason and moderation?

This seems pretty unconstitutional...

Good news.

The price of taking public taxpayer dollar funds....the government can attach conditions. If the Corporate robber barons don't like it, don't take the bailout money.

someone remind me again why these people should even get $500,000. We are about to face a very serious recession, possibly even a depression because these people messed up big time. We should make them donate their pay checks to the TARP fund.

Absolutely Correct! If the Government is giving money in good faith to these banks, so the stay afloat and keep the economy going, then they should exercise restraint when giving in Bonuses and payouts. These moneys are NOT entitlements, they were approved by the government in good faith.

Enough!

I am constantly amazed that there is virutally no discussion concerning Barney Frank, Franklin Raines, Johnson at Fannie and Freddie and Chris Dodd at banking and the incredibly huge role they played in this implosion of the economy. I guess we will have to wait for the history books to be written as it is obvious that none of you know anything about this or want to know. No conspiracy, just simple information readily available to anyone, but apparently not to the msm or you. Yes there was greed at many levels, but not just in corporate America. And not always of the monetary sort of greed. Power is equally evil in the scheme of this mess. Meanwhile we get to listen to the never ending drone of Barney and Dodd lecturing everyone else. What evil creepy guys these two boys are. Oh, but what the heck.

Fn A. I say now we go after atheles and the hollywood scum who are grossly overpaid. And how about ex-government employees lobbying re: Daschle and people of his ilk. I think we should go after foreign governments who are corrupt and slap them down to size too. We should come up with pay structures for every job in the U.S. and raise the minimum wage to $300 per hour.

That'll fix em. Yeah at last we got em where we want them Yeah. Stick it to those bastards, but please please keep it biparitsan and no hate mongering. Please.

How about the government stop bailing them out and really allowing capitalism to work as it should? If you run your business into the ground you suffer the consequences for it. Isn't that how it is for us? And who is going to enforce this? From the article it appears that once they have paid their " bailout loan" they can then revert back to their usual greedy ways. Would they then be able to get another bailout down the road? It should be stipulated that this is a one time deal. Once this is given out the faucet is shut off. I can just see these banks now cutting other services or employee benefits to get this paid faster so they can go back to getting what they were getting. It is simply a bandaid as well to an even bigger problem... too much access for these companies with politicians in the first place.

Reiterating what I said above, the salary cap applies only to companies that are receiving tax payer bailout funds. The cap is automatically lifted when each company repays the bailout money.

This is not communism as some imply, but fiscal responsibility and common sense. To be honest, I think 500K is exceptionally generous considering the astounding damage these idiots have done to our economic system. In any other country they'd be in prison.

ha ha ah ha..........

Do we realize that that is still a half a million.Those guys have already pocketed the part of our 401k's that they did'nt lose.I think it to much but I'm glad that my tax money could help these poor fellers.

Kind of wish I voted for the guy

This cap is better than no cap. Although, I would rather see these executives make the Nations Avg. annual income since they are taking OUR MONEY. Give them $49,000 annually. I think that's fair.

I am 100% for putting a cap on executives' salaries at corporations who receive OUR money. If a company is failing and needs our help, there is no logical way to justify giving the people responsible for these companies obscene amounts of money.

As for corporations that are not failing, they can pay their executives whatever they want, but I find the size of the wage gap between executives and regular employees to be ludicrous. That's greed and corruption for ya. The epitome of capitalism.

Normally I am against any form of government regulation when it comes to salaries, but since these guys extended their hands for help they accept the rules attached to this help. Still this should have been put in place before the money was given because I do not think they can add this after the fact.

Very Communist of him, everyday he shows his true Communist colors.

i like this idea, how i really do disagree with the bail-out in the first place.

Kickass, and I agree with Maeveeo, getting paid the same as the fucking president seems more then fair, cut it down to 400,000!

Finally, some real oversight and control.

I am for this one. Who needs more that $500,000 a year?

good

Those assholes on Wall Street should be looking for a new job with no pay at all. They drove there companies into the ground being greedy. And we the tax payers are footing the bill...bills. They should work for free as long as they are accepting our money to fix their failure. I'm sure their 2007 bonuses are going to last them a while. Obama is right on the money with this one. 350 billion the Bush/Paulson way had little or no affect on our economy.

That still seems like a ton of money to receive when your company is failing. Maybe that's just me though!?

Financial institutions regularly put restrictions on your financial outlays when you take a large business loan from them. Start up investors and initial capital contributors usually put huge restrictions on what is done financially until they receive their investment (with benefit) back. Angel investors do the same. Why shouldn’t the government do the same with its assistance?

Washington should check out companies B-4 giving them anything ....CEO's should make no more than
Obama ..$ 400,000 per year if it is coming from Washington ....There is NO TRUST ANYMORE
Thats what started this fiscal crap that along with
GREED & 4 the companies who got free money
like the BANKS etc ? Should know what it's like to be
POOR & OUT OF WORK !

This is one of the first steps to fiscal responsibility!

The greed of Wall Street, the insurance industry, and many big companies has brought America to its economic knees.

It is the ultimate of corporate greed to fire or lay off thousands of workers while collecting untold millions of bonuses, salary, and perks.

Am reminded of the old phrase "Oughta be a Law" yes a law against the obscene salaries of these high CEO's.....