Obama caps executive pay tied to bailout money

[pontooner]

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


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

[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]

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


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

This is a REALLY STUPID IDEA..........

As soon as the economy starts to rebound, these guys will BOLT for the first decent opportunity, leaving some serious gaps in senior management at a lot of financial institutions.

Look, I HATE the fact that these guys make what they do but the MARKET will pay what the MARKET can pay...........when you infuse government into the equation, you start creating an ARTIFICIAL CAP, which will either be broken, or good talent will leave.

When the good talent bails, and moves to greener pastures, that will leave holes, which may be VERY HARD to fill. Who wants to take a job at CitiCorp for 500k, when they can apply at Bank of WHATEVER and make 1, 2, 3, or more millions.........

Executive pay makes up a very little amount of the bailout money that has been used.......

Yea, it MAKES me sick.............

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.

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

[Mean Morone]

It's a good thing we don't live in a socialist country or they would be telling people how much they can earn. Wait a minute, I think they are doing that.

[Chubminnow]

Morone - You hit the nail on the head right there buddy...socialism is EXACTLY where Nobama is steering us. And the very first thing I know of that proves this fact is he is introducing or signing some kind of bill that says children will get free healthcare. Now I'm all for children being taken care of, etc...but don't we already have something in place right now that allows children to have healthcare if their parent or parents income qualifies for it? I think it's called welfare.

Thus far I STILL have NOTHING good to say about Nobama, so maybe I best leave these Nobama threads alone since I have a biased opinion.

[know1]

I would have STRONGLY opposed this cap except that I even MORE STRONGLY opposed that stupid, stupid bailout. I guess if we give them money, we might as well tell them how to run their businesses to.

Next I'm waiting for the government to tell the auto companies to limit union pay. After all, that puts a bigger dent in their bottom line than the CEOs pay does.

[zx150]

It is a way to make him self look good. Like he is doing something, put a little more teeth in it. Pay them on straight commission and see how fast thing get turned around.