Wednesday, February 04, 2009

U.S. Plans to Curb Executive Pay for Bailout Recipients - NYTimes.com

U.S. Plans to Curb Executive Pay for Bailout Recipients - NYTimes.com:
"The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.

Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends. "


Well, this will definitely make Federal Bailout money less desirous.

1 comment:

Heaven Help Us said...

It will be interesting to see how this plays out. I find it grossly unethical for firms to accept bailout money and then lavish themselves with huge salaries and bonuses. I do understand that some of it may have been contractually necessary but it is still unethical.

Also interesting is that former AIG top executive Kevin Kelley jumped ship from AIG and its
company Lexington Insurance to head up a company based in Bermuda. (Offices are in Boston.) Is he at all legally responsible for the mess called AIG? Did he jump ship to a new company so he could keep a big salary not subject to the regulations of the U.S. and the Obama administration? What about the AIG executives that he brought with him to this new company?

Nothing the government has tried to do, thus far, seems to have worked. Let's hope curbing executive pay helps...and does not cause companies to restructure and move part of operations/offices/addresses out of the country and out of the reach of U.S. regulations. .. We lose them, don't we lose their corporate taxes?