Obama caps executive pay tied to bailout money

[aMillionDreams]

Executives at Macy's just received a bonus of 1.39 million dollars a day after they announced that are cutting 7,000 jobs.

THAT is insanity.  And it's going to have to end if America is going to get out of its financial crisis.

This is how revolutions begin and regimes fall, the rich get too rich and the poor won't stand for it anymore (see French Revolution).

http://news.cincinnati.com/article/20090203/BIZ01/302030063/1055/NEWS

[Sunny]

This is how revolutions begin and regimes fall

AMEN SISTA

[Ghosts_on_TV]

This is how revolutions begin and regimes fall

AMEN SISTA

AMD is a guy.

[Ruckus]

Senior Management at my company all just took 10% pay cuts for the forseeable future just so they didn't have to lay anyone off (They have never laid anyone off, ever). I applaud that.

Thats a good start. I have never, ever understood why the few on top need THAT much. Sure make more then then rest as reward for clawing your way there, but come on, that much? Seriously, what the hell are you gonna do with all of it?

When it comes to CEO compensation, it really is a intriguing, mostly American phenomenon when examining income disparity in the corporate hierarchy but I had heard that it was changing and many European corps were beginning to follow the American model to "lure the top talent."  ::)

Let us not confuse financial sector heads with general corporate heads although they obviously are seriously intertwined in where the money goes.  Wall Street honchos always made big bonuses whereas the average CEO's compensation packages get even more inflated by generous stock option packages which I'm guessing aren't doing so well these days.  These Wall Street nut jobs should just go suck it. >:(

Not that I'm going to try to read the stimulus bill which I am sure is in the many many many thousands of pages range but I am curious as to the legal loopholes they had to jump through to avoid major constitutionality issues of capping any pay.  I'm sure some story will come in due time and no one has the balls to complain of such a popular move. :)

I guess stuff is starting to happen...

i don't see too many constitutional issues as far as capping the pay, which are you thinking? I would consider these companies public sector at this point. I think a lot of the complaints stem from the caps not being in the initial agreements.

I agree about the fear that great execs will be heading overseas but I'm not sure the euro companies are booming either (germany i guess the exception?? not sure)

Perhaps you are right PL and obviously beyond my knowledge.  Basically, at what point to does a bank return to its private status..when they have expended all their allocated funds, termination of specific period of time, meeting of a gazillion stipulations..etc?

As privatization of government has happened, issues of outsourcing the constitution have arisen and was wondering how much power can the executive wield in controlling market forces of more than nominal private insitutions?

[Ruckus]

Senior Management at my company all just took 10% pay cuts for the forseeable future just so they didn't have to lay anyone off (They have never laid anyone off, ever). I applaud that.

Thats a good start. I have never, ever understood why the few on top need THAT much. Sure make more then then rest as reward for clawing your way there, but come on, that much? Seriously, what the hell are you gonna do with all of it?

When it comes to CEO compensation, it really is a intriguing, mostly American phenomenon when examining income disparity in the corporate hierarchy but I had heard that it was changing and many European corps were beginning to follow the American model to "lure the top talent."  ::)

Let us not confuse financial sector heads with general corporate heads although they obviously are seriously intertwined in where the money goes.  Wall Street honchos always made big bonuses whereas the average CEO's compensation packages get even more inflated by generous stock option packages which I'm guessing aren't doing so well these days.  These Wall Street nut jobs should just go suck it. >:(

Not that I'm going to try to read the stimulus bill which I am sure is in the many many many thousands of pages range but I am curious as to the legal loopholes they had to jump through to avoid major constitutionality issues of capping any pay.  I'm sure some story will come in due time and no one has the balls to complain of such a popular move. :)

I guess stuff is starting to happen...

i don't see too many constitutional issues as far as capping the pay, which are you thinking? I would consider these companies public sector at this point. I think a lot of the complaints stem from the caps not being in the initial agreements.

I agree about the fear that great execs will be heading overseas but I'm not sure the euro companies are booming either (germany i guess the exception?? not sure)

I was wondering if this was an American problem or a worldwide issue. Many non financial CEO's still make obscene amounts. Their are some good ones out there who make more then their average employee but not millions and millions more. Sadly not enough.

I'll try to dig up the article but there was a significant disparity between European and American CEOs up until the turn of the century.  This coincided with exorbitant stock option packages given American CEOs.  Apparently this disparity is shrinking and I've totally forgotten why

[Penny Lane]

Senior Management at my company all just took 10% pay cuts for the forseeable future just so they didn't have to lay anyone off (They have never laid anyone off, ever). I applaud that.

Thats a good start. I have never, ever understood why the few on top need THAT much. Sure make more then then rest as reward for clawing your way there, but come on, that much? Seriously, what the hell are you gonna do with all of it?

When it comes to CEO compensation, it really is a intriguing, mostly American phenomenon when examining income disparity in the corporate hierarchy but I had heard that it was changing and many European corps were beginning to follow the American model to "lure the top talent."  ::)

Let us not confuse financial sector heads with general corporate heads although they obviously are seriously intertwined in where the money goes.  Wall Street honchos always made big bonuses whereas the average CEO's compensation packages get even more inflated by generous stock option packages which I'm guessing aren't doing so well these days.  These Wall Street nut jobs should just go suck it. >:(

Not that I'm going to try to read the stimulus bill which I am sure is in the many many many thousands of pages range but I am curious as to the legal loopholes they had to jump through to avoid major constitutionality issues of capping any pay.  I'm sure some story will come in due time and no one has the balls to complain of such a popular move. :)

I guess stuff is starting to happen...

i don't see too many constitutional issues as far as capping the pay, which are you thinking? I would consider these companies public sector at this point. I think a lot of the complaints stem from the caps not being in the initial agreements.

I agree about the fear that great execs will be heading overseas but I'm not sure the euro companies are booming either (germany i guess the exception?? not sure)

I was wondering if this was an American problem or a worldwide issue. Many non financial CEO's still make obscene amounts. Their are some good ones out there who make more then their average employee but not millions and millions more. Sadly not enough.

I'll try to dig up the article but there was a significant disparity between European and American CEOs up until the turn of the century.  This coincided with exorbitant stock option packages given American CEOs.  Apparently this disparity is shrinking and I've totally forgotten why

ruckus--you might be right..i agree, it's a double edged sword having the govt involved, on one hand they can cut CEO pay and make us all happy (yay) but then again, they can also do what the govt does BEST!! (take every 10$ we pay in taxes and deliver a half cent's worth of services)  now we let the GOVT deal w/banks?? WTF are we thinking! i think a lot of this would come down to Contract Law, too, rather than con law. (Kind of like when a church takes govt money) When the govt agreed to buy up all the bad debt, i wonder what else these banks agreed to. If they DIDn't agree, then there you may have your con law issues.

It's crazy, as our economy (and w/it jobs, vitality, livelihoods, futures) sink into the toilet, at least we are all learning more and becoming proactive citizens. Wierd how that works?

[Ruckus]

Well I googled it and there are a bunch of blogs up already with interesting points though most come from right.  Here were the top two that popped up

http://www.theminorityreportblog.com/story/steve_foley/2009/02/04/obama_s_executive_salary_cap_is_unconstitutional

http://rightrunner.blogspot.com/2009/02/is-obamas-executive-salary-cap.html

[mjkoehler]

Thanks. That'll give me something to read tonight.

[Ruckus]

Thanks. That'll give me something to read tonight.

Can't find it. but if you're bored ;)

http://www.nytimes.com/2009/01/04/business/economy/04view.html?partner=permalink&exprod=permalink

Revealing numbers in this one!
http://www.finfacts.com/irelandbusinessnews/publish/article_10002825.shtml

http://www.fpif.org/fpiftxt/4504

[Boona]

Communist!
(just wanted to be the first)

How will the poor dears possibly be able to survive on a measly half a million a year? This has been a long time coming, but in the future, it will be up to shareholders to stop this nonsensical cycle of paying executives more and more money just to stick around and cut jobs. Any public business that commits mass layoffs and loses money should not be allowed to continually overpay management. And the only way to do that when the "crisis" is over is with consumer power.

[/color]

Wonderfully put.  We have the power, as consumers, shareholders and citizens.  This all revolves around money, and we get to decide where we spend our money.  Don't give money to corporations that do not support your personal ethics.  If you think a company is treating employees unfairly, doesn't share your environmental concerns, or whatever you believe in, then don't give them your money.  

We have to educate ourselves about the companies we give our money to.  You wouldn't give a daycare your money, or a mechanic, or a financial planner, without first researching the company.  Know where your 401K is invested, what individual companies.  And support your local organizations and vendors.  We can make a difference, we just have to put some effort into it.  ::)

[Penny Lane]

Communist!
(just wanted to be the first)

How will the poor dears possibly be able to survive on a measly half a million a year? This has been a long time coming, but in the future, it will be up to shareholders to stop this nonsensical cycle of paying executives more and more money just to stick around and cut jobs. Any public business that commits mass layoffs and loses money should not be allowed to continually overpay management. And the only way to do that when the "crisis" is over is with consumer power.

[/color]

Wonderfully put.  We have the power, as consumers, shareholders and citizens.  This all revolves around money, and we get to decide where we spend our money.  Don't give money to corporations that do not support your personal ethics.  If you think a company is treating employees unfairly, doesn't share your environmental concerns, or whatever you believe in, then don't give them your money.  

We have to educate ourselves about the companies we give our money to.  You wouldn't give a daycare your money, or a mechanic, or a financial planner, without first researching the company.  Know where your 401K is invested, what individual companies.  And support your local organizations and vendors.  We can make a difference, we just have to put some effort into it.  ::)

so true...that is why when i think of the Bernie Madoff situation, i wondered what those people thought they were investing in? they weren't allowed to really even inquire (or he would cut them out). i realize people tend not to care as long as they're getting paid, but when everyone else is losing money by the boatloads and he's still delivering, didn't it look weird? it's hard for me to feel bad for some of those people;