It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
President Barack Obama will announce tomorrow that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive federal rescue funds, an administration official said.
The unprecedented steps -- which also include restrictions on corporate jets, office renovations and holiday parties -- come amid an outcry over an $18.4 billion bonus payout in 2008 to executives. The protests have been building since October when Congress passed a $700 billion financial-rescue
Any additional compensation will be in restricted stock that won’t vest until taxpayers have been paid back, said the official, who requested anonymity.
Originally posted by TrueAmerican
But what I want to see is some kind of legislation that limits company relocation of jobs and outsourcing of labor internationally. Bring the jobs back home...
Obama said that massive severance packages for executives who leave failing firms are also going to be eliminated. "We're taking the air out of golden parachutes," he said.
Other new requirements on "exceptional assistance" will include:
_The expansion to 20, from five, the number of executives who would face reduced bonuses and incentives if they are found to have knowingly provided inaccurate information related to company financial statements or performance measurements.
_An increase in the ban on golden parachutes from a firm's top five senior executives to its top 10. The next 25 would be prohibited from golden parachutes that exceed one year's compensation.
Originally posted by Illusionsaregrander
If you didnt have CEO's all over America cutting the pay of their workers to make their own checks fatter, you wouldnt need to hope for a bailout to pay off your personal debts. You would have an income that was sufficient to do that.
I believe the spending power of the ever shrinking middle class is more important than the elite. The middle class are the ones that buy the Fords and Chevy's of the world. The middle class also wants to spend money on those pesky big screen televisions. The middle class are the ones that throw a Big game party, to the tune of millions across the nation.
Originally posted by Illusionsaregrander
I would like to see executive pay fixed at a multiple of the median income of its workers. Say three times the median salary.
That would give them a disincentive to cost cut by slashing employee compensation down to rates that are worthless as a living wage.
Because believe it or not, the wealth of a nation is the spending power of its people, not just that of the elite.
Originally posted by saturnsrings
True, we as a nation, and indeed the world, need the elite, but I believe they need us more than we need them.
Dismay on Wall Street over Obama pay cap
Wall Street and the business community gave a lukewarm response Wednesday to the US administration's plan to cap executive pay, fearing it may lead to a talent exodus and delay recovery in the finance sector.
The reaction came after President Barack Obama announced that executives of finance firms taking government bailouts would have their annual salaries limited to 500,000 dollars, a move aimed at protecting taxpayer interests.
The salary limit is "still a hefty sum to be sure, and the spirit of the order certainly has popular appeal, but it's a slippery slope when the government puts restrictions on how much an individual can earn in the private sector," said Patrick O'Hare of the independent research firm Briefing.com.
"Also, the order itself strikes us as a disincentive for financial firms to reach out for aid, which will just prolong the recovery for the sector and the economy."
Douglas McIntyre at the financial website 24/7 Wall Street said the limits could make it more difficult for troubled banks to retain their best executives.