Results 1 to 6 of 6

Thread: Obama to detail further compensation limits

  1. #1
    The true JBC
    TOASTMASTER GENERAL
    kwame k's Avatar
    Member No
    24030
    Join Date
    Feb 2008
    Last Online
    11-14-2018 @ 03:27 PM
    Location
    Holly, MI
    Age
    55
    Posts
    11,302
    Status
    Offline
    Thanks
    2,369
    Thanked 2,298 Times in 1,690 Posts


    Rep Power
    52

    Obama to detail further compensation limits

    WASHINGTON – President Barack Obama wants to impose a $500,000 pay cap on executives whose firms receive government financial rescue funds, a dramatic intervention into corporate governance in the midst of financial crisis.

    The new restrictions, described by an administration official familiar with the new rules, are to be announced Wednesday morning at the White House. The steps set the stage for the administration's unveiling next week of a new framework for spending the money that remains in the $700 billion financial rescue fund.

    "If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog," President Barack Obama said Tuesday.

    The move comes amid a national outcry over extravagant bonuses for executives heading companies seeking taxpayer dollars to remain solvent.

    Call it the maximum wage for some high-earners.

    The administration official, speaking on the condition of anonymity because the plan had not yet been made public, said the most restrictive limits would apply only to struggling large firms that receive "exceptional assistance" in the future. Healthy banks that receive government infusions of capital would have more leeway.

    Firms that want to pay executives above the $500,000 threshold would have to compensate them with stock that could not be sold or liquidated until they pay back the government funds, the official said.

    The president and members of Congress have been weighing various proposals to restrict chief executives' compensation as one of the conditions of receiving help under the $700 billion financial bailout fund. The desire for limits was reinforced by revelations that Wall Street firms paid more than $18 billion in bonuses in 2008 even while struggling with the economic downturn.

    Banks and other financial institutions that receive capital infusions, but are considered healthy, could waive the $500,000 salary cap and the stock restrictions under the new Obama rules. But the companies would have to disclose the compensation and submit the pay plan to shareholders for a nonbinding vote.

    The administration will also propose long-term compensation restrictions even for companies that don't receive government assistance.

    According to the official, the proposals include:

    • Requiring top executives at financial institutions to hold stock for several years before they can cash out.

    • Requiring nonbinding "say on pay" resolutions — that is, giving shareholders more say on executive compensation.

    • A Treasury-sponsored conference on a long-term overhaul of executive compensation.

    Top officials at companies that have received money from the government's Troubled Asset Relief Program already face some compensation limits. But elected officials want to place more caps.

    "I do know this: We can't just say, 'Please, please,'" said Sen. Claire McCaskill, D-Mo., who has proposed that no employee of an institution that receives money under the $700 billion federal bailout can receive more than $400,000 in total compensation until it pays the money back.

    The figure is equivalent to the salary of the president of the United States.

    Compensation experts in the private sector have warned that such an intrusion into the internal decisions of financial institutions could discourage participation in the rescue program and slow down the financial sector's recovery. They also argue that it could set a precedent for government regulation that undermines performance-based pay.

    "It's not a government takeover," Obama stressed in an interview Tuesday with CNN. "Private enterprise will still be taking place. But people will be accountable and responsible."

    Even some Republicans, angered by company decisions to pay bonuses and buy airplanes while receiving government help, have few qualms about restrictions.

    "In ordinary situations where the taxpayers' money is not involved, we shouldn't set executive pay," said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee.

    "But where you've got federal money involved, taxpayers' money involved, TARP money involved, and the way they have spent it, with no accountability, is getting close to being criminal."

    Link
    Hey Jackass! You need to [Register] or log in to view signatures on ROTHARMY.COM!

  2. #2
    The true JBC
    TOASTMASTER GENERAL
    kwame k's Avatar
    Member No
    24030
    Join Date
    Feb 2008
    Last Online
    11-14-2018 @ 03:27 PM
    Location
    Holly, MI
    Age
    55
    Posts
    11,302
    Status
    Offline
    Thanks
    2,369
    Thanked 2,298 Times in 1,690 Posts


    Rep Power
    52
    Banks and other financial institutions that receive capital infusions, but are considered healthy, could waive the $500,000 salary cap and the stock restrictions under the new Obama rules. But the companies would have to disclose the compensation and submit the pay plan to shareholders for a nonbinding vote.
    To me.....this looks like a huge loophole.......if the banks look healthy??????? Hmmmm.......


    "In ordinary situations where the taxpayers' money is not involved, we shouldn't set executive pay," said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee.

    "But where you've got federal money involved, taxpayers' money involved, TARP money involved, and the way they have spent it, with no accountability, is getting close to being criminal."
    I have to say I agree with you!

  3. #3
    Full Member Status


    Member No
    3741
    Join Date
    Apr 2004
    Last Online
    11-24-2009 @ 09:21 PM
    Location
    Los Angeles
    Posts
    4,011
    Status
    Offline
    Thanks
    63
    Thanked 92 Times in 76 Posts


    Rep Power
    24
    This thing has zero fucking teeth at all. In any case, it has to be on NEW contracts...which means everyone gets a round of extensions on their CURRENT contract.
    Hey Jackass! You need to [Register] or log in to view signatures on ROTHARMY.COM!

  4. #4
    Builder of Sites
    DIAMOND STATUS
    LoungeMachine's Avatar
    Member No
    6584
    Join Date
    Jul 2004
    Last Online
    02-08-2016 @ 02:28 AM
    Location
    Milan to Minsk
    Posts
    32,555
    Status
    Offline
    Thanks
    4,111
    Thanked 3,705 Times in 2,513 Posts


    Rep Power
    89
    Nothing like shutting the barn door after the Busheep have all left the barn....
    Hey Jackass! You need to [Register] or log in to view signatures on ROTHARMY.COM!

  5. #5
    Builder of Sites
    DIAMOND STATUS
    LoungeMachine's Avatar
    Member No
    6584
    Join Date
    Jul 2004
    Last Online
    02-08-2016 @ 02:28 AM
    Location
    Milan to Minsk
    Posts
    32,555
    Status
    Offline
    Thanks
    4,111
    Thanked 3,705 Times in 2,513 Posts


    Rep Power
    89
    Quote Originally Posted by Big Train View Post
    This thing has zero fucking teeth at all. In any case, it has to be on NEW contracts...which means everyone gets a round of extensions on their CURRENT contract.
    Remind me again on who's watch the original TARP funds were doled out?

  6. #6
    Full Member Status


    Member No
    3741
    Join Date
    Apr 2004
    Last Online
    11-24-2009 @ 09:21 PM
    Location
    Los Angeles
    Posts
    4,011
    Status
    Offline
    Thanks
    63
    Thanked 92 Times in 76 Posts


    Rep Power
    24
    Round one, Republicans. Doled out to banks, which nobody is watching.

    Round two, Democrats, funding every pet project of every payroll patriot across the land.

    What's your point...this thing still has no fucking teeth.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Obama To Hunt Terrorists In Off-Limits Pakistan!
    By Nickdfresh in forum The Front Line
    Replies: 31
    Last Post: 08-02-2007, 10:49 AM
  2. Dave discussing VH in detail...
    By Hardrock69 in forum Main VH/DLR Discussion
    Replies: 35
    Last Post: 01-29-2006, 01:27 AM
  3. N. Koreans detail deadly experiments on prisoners
    By lucky wilbury in forum The Front Line
    Replies: 1
    Last Post: 11-24-2004, 12:57 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •