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)