Salary cap for ALL U.S. companies – yikes?!?!


From http://financialweek.com:

Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance, House Financial Services Committee Chairman Barney Frank said.

“There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.
Mr. Frank seems to be in synch with the Obama administration in his plans for executive compensation.Treasury Secretary  Geithner said he would consider “extending at least some of the TARP provisions and features of the $500,000 cap to U.S. companies generally.”

Not just companies getting bailout money folks, ALL U.S. companies may be subject to this government control.

Will professional athletes be next? 

After all, it just takes someone like Frank to cite “…deeply rooted American anger.” 

Watch out ARod.

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2 Responses to “Salary cap for ALL U.S. companies – yikes?!?!”

  1. Reena Says:

    This is very concerning! Caps like these will result in our best moving out of the country to work for businesses located elsewhere. I cannot believe that ANY economist would council this to be a wise step.

    “Deeply rooted American anger,” is due to the government handing out a bunch of money without first attaching strings– that is why we are angry.

    “Deeply rooted American anger,” is due to the government not following the regulatory safegaurds put in place to prevent predatory loans etc.,– that is why we are angry.

    “Deeply rooted American anger,” on the part of this Didley fan is the result of our country having too many Dumb@$$ in the general public who were unable to realize that if a loan sounded to good to be true then it was!

    Our economic mess isn’t the result of the salaries being paid to high level CEOs, it is the result of a majority of people not having any financial responsibility for making decisions to live well beyond their means.

    Like

  2. Reena Says:

    This is what I think should be done– there has been some talk about it for CEOs capped at $500,000 and whose companies are receiving tax payer funded bailout money.

    It reflects a “Let them reap what the sow” thought pattern.

    Checkout the entry (scroll down)

    Toxic Payrolls, February 8th, 2009

    http://economistsview.typepad.com/economistsview/

    Like

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