Obama caps executive pay tied to bailout money

[bassin_bug]

At least this makes them take some financial accountability if they want bailout money.


http://news.yahoo.com/s/ap/20090204/..._executive_pay

I can't help but wonder about that. Granted a cap may be put on the executive's salary but what about all the money they take off the top in stock options? I know a CEO who gets $7 million a year in salary plus stock options. If he gave up all of his salary, he wouldn't miss it because he exercised $112 million in stock options last year plus he also got a big bonus. It sounds good when Obama says it, but he hasn't done anything until he kills the huge stock options and bonuses along with capping the executive pay. jmo

[JBryant]

The article about this on CNN mentioned that any stock options given out must be done in a form that is not sellable until all borrowed money is paid back, or some such. I'm not 100% sure on the details as I read it quickly earlier, but apparently there are some provisions to govern the stocks given, too.

Edit: Found what I was talking about. "Under Obama's plan, companies that want to pay their executives more than $500,000 will have to do so through stocks that cannot be sold until the companies pay back the money they borrow from the government." -- According to CNN.com

[Devils Horse]

The article about this on CNN mentioned that any stock options given out must be done in a form that is not sellable until all borrowed money is paid back, or some such. I'm not 100% sure on the details as I read it quickly earlier, but apparently there are some provisions to govern the stocks given, too.

Edit: Found what I was talking about. "Under Obama's plan, companies that want to pay their executives more than $500,000 will have to do so through stocks that cannot be sold until the companies pay back the money they borrow from the government." -- According to CNN.com

$500,000 is still an obscene amount to pay someone at the helm of a company with it's hand out to the government. Wonder why he didn't he apply his 'rich person' watermark of 120K or so? Hmm.

Assuming CNN is correct, and very little from the commie news network is, it's a definite a step in the right direction. Hard to get over Washington stealing our money, but the cap and restrictions on those they're handing it out to helps a little.

[apb]

Heard something similar on NPR this afternoon too. $500k cap and stocks could not be sold until the gov't (i.e., us taxpayers!) were paid back. Works for me. From the story, they noted that most of those execs make waaaaay more than $500k in base salary.

Andrew

[GeoFisher]

$500,000 is still an obscene amount to pay someone at the helm of a company with it's hand out to the government. Wonder why he didn't he apply his 'rich person' watermark of 120K or so? Hmm.

Assuming CNN is correct, and very little from the commie news network is, it's a definite a step in the right direction. Hard to get over Washington stealing our money, but the cap and restrictions on those they're handing it out to helps a little.

Their hand is out because the GOVERNMENT created this MESS. Some of it is because of really STUPID market choices, but most of it is because of REALLY STUPID LEGISLATION...........

I have an idea............FIX BOTH.

Later,

Geo

[GeoFisher]

$500,000 is still an obscene amount to pay someone at the helm of a company with it's hand out to the government. Wonder why he didn't he apply his 'rich person' watermark of 120K or so? Hmm.

Assuming CNN is correct, and very little from the commie news network is, it's a definite a step in the right direction. Hard to get over Washington stealing our money, but the cap and restrictions on those they're handing it out to helps a little.

Socialism AT it's best.........gotta love it.

I don't like the bailouts...........PERIOD.............let them all FAIL, and you know what, those executives LOSE their JOBS.................

Something not being talked about with regards to the bailouts, is the amount of workers involved.........the financial sector makes up about 30 million jobs..................allowing 10 percent of the largest banks fail, will mean 3 or 4 million jobs.......almost as much as the UAW......but these guys are not CONTROLLED by labor unions...........

You can let the Auto Companies fail because you can quickly replace workers with non union workers......but in the financial sector, when you lose those jobs.........you have to REPLACE them with about he same dollar jobs, or you won't find workers............It might not work exactly like that in a bad economy, but professional workers who are GOOD can generally find a job in any economy.

Later,

Geo