From CNN President Obama announced Wednesday that executives of companies receiving federal bailout money will have their pay capped at $500,000 under a revised financial compensation plan, CNN reports.
Note:This story is in reference to an external source. Click here to read the original story.
February 4th, 2009 at 2:43 pm
Does Obama understand that most executive compensation is NOT in the form of salary, but in bonuses, dividends, new shares, deferred income and perks?? Capping salary will not do a thing! Steve Jobs’ salary last year was $1.00 !! Think he’s hurting? Is anyone awake in Washington??
February 4th, 2009 at 3:00 pm
Bravo!! Finally common sense government! This should have been done long ago…..
February 4th, 2009 at 3:07 pm
“Does Obama understand that most executive compensation is NOT in the form of salary, but in bonuses, dividends, new shares, deferred income and perks??”
Yes, Obama address that in his speech specifically “compensation”, it is the News media that is using the term “salary”.
February 4th, 2009 at 3:17 pm
Bravo Mr. President. Change has indeed come.
Wall Street is no longer Fleece Street, but paved with public trust and confidence.
Dated: 2/4/09
/s/
Ravi Batra
February 4th, 2009 at 3:21 pm
Does ANYONE realize that capping anything to do with compensation is another step closer to socialism? I am far from having an executive position so this particular cap does not affect me. When he gets down to my pay level I wonder what he will think is too much for me.
February 4th, 2009 at 4:07 pm
I know, lets cut the pay and perks of Congress and the President for put the USA in 10 trillion dollar deficit.; it our the tax payers money
February 4th, 2009 at 4:09 pm
THANK YOU, MR. PRESIDENT!
1) American corporations, their executives, and their lobbyists have been running this country for all too long. The United States of America has become a “corprocracy” not a democracy–above all, in the last eight years.
2) It is time for big business to give back to the nation, the nation that made their opportunities possible. American business has raped and plundered this great country (and other countries) for all too long. The evidence is there for all to see,
3) The “Free Market” is not so free. Those of us in the in middle class have had to pay for Wall Street’s free ride all too long.
4) The COURAGE of this President in taking on this systemic corruption is virtually unprecedented.
February 4th, 2009 at 4:18 pm
ceo’s need their pay cut because the country is in a depression.
February 4th, 2009 at 4:23 pm
He wants to limit what someone can make? Sounds like socialism.I do believe there should be restrictions on companies that receive fereral aid but talk of government mandating a compensation cap? How about limiting how much we pay the multi millionaires who we elect to congress and the senate. Or maybe Obama should at least require these millionares, who he wants to appoint to cabinet posts, to pay their taxes. No instead lets go after the private sector.
February 4th, 2009 at 4:28 pm
Mark, the only limits to what someone can make being called for are for those that have a hand out for government – that is, taxpayer – money to help their failing businesses stay afloat. If your company is not expecting a bail out, you can pay your exec’s whatever you want, but if you’re expecting me (and my neighbors all across America) to pay a failed exec an exorbitant amount of money (in the form of perks, etc), forget it! Socialism, smocialism! Why don’t you think about what you’re criticizing before you criticize?
February 4th, 2009 at 5:05 pm
I am a happy tax payer. Finally, something out of Washington that makes complete sense. The idea that this is a socialist plot is ridiculous. It is simply what makes sense. It makes sense that if you are going to ask for my money there should be strings attached. You can’t get a loan from anywhere else without terms. Why shouldn’t government bailouts come with terms. It makes sense that big business should have to justify expenditures – including “compensation.” It makes sense that big business be required to be accountable. Big business must understand that their greed and total disregard for the little man will no longer be tolerated. The vast majority of the Bush administration’s decisions directly influenced his personal investments and interest. Let’s put an end to that reign of terror.
February 4th, 2009 at 5:06 pm
Change? Please, the rich will always take care of the rich no matter who’s in charge. The rich have so many loopholes all the stars in the sky can get through. There is no change.
February 4th, 2009 at 5:06 pm
It seems that when the Wall Street begs for bailout money they don’t mind socialism. They mind it only when it affects their perks. Well, if they want capitalism, then they should go bust, and let more competitive banks with wiser strategies stay. I agree for once with Obama’s decision. Let them pay for their mistakes.
February 4th, 2009 at 5:14 pm
There is only one reason why our country is in the mess it is….Greed. All Americans are too greedy. From the CEO’s all the way down to the employee who would rather let their company go broke because they refuse to take a pay cut. Even the low income is at fault for trying to buy that house they knew they could not afford. We, Americans, caused this issue.
February 4th, 2009 at 5:31 pm
Just a note Mike. Some people could afford their homes before the economy began to slip and they lost their jobs. The recession was felt by the lower middle class long before it became a national issue. It is like “ground hog” predictions: Those closest to the ground are more capable of predicting the weather.
The statement you made in reference to the lower income group is a major reason I did not vote for McCain. The comment from Palin about people buying homes they could not afford isn’t completely true. Some people bought what they could afford before their jobs were lost and their savings were depleted.
Just a note.
February 4th, 2009 at 5:50 pm
THis is a lot of smoke and mirrors… were’s the explainantion of the fine print… I hear there are some rather large loop holes
February 4th, 2009 at 6:15 pm
calling the salary cap socialism is rediculous… this is a measure to get the money back to where it needs to be, pay back the LOANS and you can make as much as you want, this is still a free market… now if it will work or not is obviously still to be seen, but its certainly a step in the right direction
February 4th, 2009 at 7:58 pm
Tonya,
I hear what you’re saying and I also agree, that was happening. Even during the good times this has always happened. I was just making a comment of the big picture.
February 4th, 2009 at 8:40 pm
Take a look at what happened to Bank of America (BAC), Citigroup (C), and AIG (AIG) today in the stock market after the president announced this little initiative. While it’s not foolproof evidence, this is a pretty good indicator of what the world thinks of Obama’s thoughts on executive compensation. If you honestly think this is any time for liberal shenanigans like this, you are out of your f—ing mind.
February 4th, 2009 at 10:19 pm
Government IS giving wall street a financial incentive… The sooner you pay us tax payers back, the sooner your pay cap goes away and you can make as much as you want.
February 4th, 2009 at 10:24 pm
Unless you are employed by the Federal government, the Federal government should not be involved in one’s compensation. That said, if a company accepts federal funds, I think it’s fair for the gov’t to impose restrictions as a general practice.
February 5th, 2009 at 1:31 am
So let me get this straight; President Obama is ordering caps of half a million dollars on BONUSES received by bank CEOs who asked for federal (TARP) tax money, and some on this board think that it’s a bad idea? So the $18 billion in bonuses and perks they awarded themselves with the initial $350 billion is okay, even though the banks are NOT giving credit to Americans, NOT giving loans to Americans, hording the funds and giving no explanation whatsoever as to how the money was spent?
February 5th, 2009 at 10:51 am
Capping the executive salary at $500,000 won’t do anything. According to CNN Money, the top 5 people at Goldman Sachs each had a salary of $600,000 in 2007, yet their total compensation ranged from $49.1-72.5 Million. Do you really think they would be concerned by the $100,000 cut in base salary? Try capping total compensation at $500,000 and see what that does.
February 5th, 2009 at 4:23 pm
Why not cap the salaries of Congress and the Senate to $1.00 if they can’t solve the problem.
February 5th, 2009 at 5:18 pm
obamas salary last year (even thought the last 22 months were spent campaigning on the road) 100+k total compensation 2007: 4 million dollars.
were else can you “go on hiatus” ie campaign for president and STILL get paid? anyone else have a job like that?
so yea capp execs “bonuses” get credit for making the government “change” and responsible again. while meanwhile creating even bigger loopholes for the rich. anyone else think its kinda funny that the rich are telling the more rich how much money they can earn?
obamas salary as president? 400K.
i can already hear the yells of socialism begin…..
February 6th, 2009 at 1:00 am
Yes setting salary caps is a Great Idea considering taxpayer funded blunders. I haven’t heard anything about bonuses or other back door revenue I do tip for reasonable service though. If I miss a payment interest and even a penalty fee is imposed not to mention a bad credit rating which follows and perhaps even jail time for (NSF) NON SUFFICIENT FUNDS which is possible due to a head injury at a campus I was attending lost my job due to a fractured wrist and
was processed and jailed for a $20.00 overdrafted pizza.
These Financial executives ultimately lied, deceived and purged the public consumers of billions, The Government then labeled these the Predatory Lenders which were then given more taxpayer money.
Im not sure I hit my head pretty hard and the fuzzy math doesn’t add up and I was in the hospital at the culinary class of cookin the books section. If you earn Millions and defraud Millions U get Billions (Capitalism at its best) I call it B.S.! and shouldn’t those responsible for taking the bogus millions for lackluster performances give back to the people ? let the punishment fit the crime!
March 25th, 2009 at 10:57 pm
IT’S NOT THE GOVERNMENTS RESPONSIBILITY TO TELL PRIVATE CORPORATIONS WHAT THEY CAN AND CAN’T DO WITH THERE MONEY!!!!!!! Ya it’s not the smartest thing to do with there money but who cares its there own money. If they want to waste it let them. But don’t make the government waste money and do unconstitutional things.
March 25th, 2009 at 10:59 pm
IT’S NOT THE GOVERNMENTS RESPONSIBILITY TO TELL PRIVATE CORPORATIONS WHAT THEY CAN AND CAN’T DO WITH THERE MONEY!!!!!!! Ya it’s not the smartest thing to do with there money but who cares its there own money. If they want to waste it let them. But don’t make the government waste money and do unconstitutional things