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Category: News Author : Duncan Riley Posted: February 4, 2009
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Win: Obama caps executive salaries at $500,000


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President Barack Obama announced Wednesday that companies receiving Government assistance under the $700 billion bailout will be restricted to a $500,000 salary cap for top executives.

“We all need to take responsibility” said the President, and that people are sick and tired of seeing Wall Street executives come to the government “hat in hand when they were in trouble, even as they paid themselves customary lavish bonuses.”

“This is America, we don’t disparage wealth. We don’t begrudge anybody for achieving success. And we certainly believe that success should be rewarded.”

But Americans begrudge “executives being rewarded for failure,” especially if their earnings are subsidized by taxpayers, “many of whom are having a tough time themselves.”

The new restrictions come in two forms, according to the NY Times. Companies getting “exception assistance” wanting to pay executives more than $500,000 will have to do so by using stock that cannot be sold or liquidated until the government money is paid back. More healthy companies that get government help will also be under the $500,000 cap, but can waive it more easily providing that they do so with full public disclosure.

(img: NY Times)











Comments


4 Archived Responses to “ Win: Obama caps executive salaries at $500,000 ”

  1. Ted
    Feb 4, 2009

    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.

  2. warren_s
    Feb 4, 2009

    Boo frickin hoo Ted. If they want govt money, then the govt should be able to make sure it isn't just lining some fat exec's pockets. Simple way for companies to avoid this “intrusion” – don't take the handout.

    If they take the money, they consent to the salary cap clause. QED.

  3. k. ward
    Feb 4, 2009

    This comment says it all, “people are sick and tired of seeing Wall Street executives come to the government “hat in hand when they were in trouble, even as they paid themselves customary lavish bonuses.” And, if our reigning govt officials had had real checks in place, keeping eyes on the SEC, we wouldn't be in this predicament now. At least President Obama is trying to do something to straighten out the clusterf#@k created over the last 8 years. If so many are against this then where are their legislation proposals? It's time for Republicans and Democrats suck it up and pass the Stim budget proposal!!! GoBama!!!

  4. Gayle
    Feb 5, 2009

    I have to thank Obama on behalf of a few grateful Canadians. SInce he announced he is capping executives salary at Banks etc. all of the sudden our Canadian Bankers are deciding to forego salaries, expensive trips and even their bonuses. Imagine that!!! Finally some of the arrogant bums that helped make this mess are eating some humble pie. Thank you Mr President.