Some welcome news:
The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.
Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.
It remains to be seen how well this holds up, of course. If there's one thing at which Wall Street excels, it's finding alternative methods to pipe money around regulations. But it's a step in the right direction, and one you would never have gotten out of the Bush "administration." And frankly, as recently as four days ago, we weren't so sure we were going to get it out of this one, either. (Are you keeping tabs on your source's track record, WaPo? He could certainly have been right at the time, of course. But keep score somewhere. Just a suggestion.)
I think it's fair to guess that lots will be said about this quote -- truly one for the ages:
It's true. It is pretty draconian."That is pretty draconian — $500,000 is not a lot of money, particularly if there is no bonus," said James F. Reda, founder and managing director of James F. Reda & Associates, a compensation consulting firm. "And you know these companies that are in trouble are not going to pay much of an annual dividend."
Mr. Reda said only a handful of big companies pay chief executives and other senior executives $500,000 or less in total compensation. He said such limits will make it hard for the companies to recruit and keep executives, most of whom could earn more money at other firms.
"It would be really tough to get people to staff" companies that are forced to impose these limits, he said. "I don't think this will work."
rest http://www.congressmatters.com/storyonly/2009/2/4/94511/26834
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