Obama to Impose Salary Caps

[mightymouse72]

If this isn't the start of socialism....
I know it seems like BS for these top execs to tote their money home in wheel barrows while the banks fail but this ain't right!!

You cannont tell a private buisness what to do with their money.
Where does this end??  $250,000??  $100,000??

~~



President Obama plans to announce strict limits on pay to executives of bailed-out financial firms, just days after slamming Wall Street top dogs as "shameful" for accepting billions in bonuses last year.

Obama, along with Treasury Secretary Timothy Geithner, is set to cap pay for government-aided Wall Street executives at $500,000, according to a senior administration official, at the White House Wednesday.

Last week, Obama called it "the height of irresponsibility" for employees to reap the billions in bonuses they got last year. A report from the New York state comptroller found employees of the New York financial world earned about $18.4 billion in bonuses last year.

An administration official familiar with the new restrictions 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.

The official, speaking on the condition of anonymity because the plan had not yet been made public, said 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 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.

Banks and other financial institutions that receive capital infusions, but are considered healthy, could waive the $500,000 salary cap and the stock restrictions. But they 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, the official said.

The proposals include:

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

-- Requiring "say on pay" nonbinding shareholder resolutions.

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



The rest here....
http://www.foxnews.com/politics/first100days/2009/02/03/obama-plans-cap-executive-pay-government-assisted-financial-institutions/

[240 is Back]

If this isn't the start of socialism....
I know it seems like BS for these top execs to tote their money home in wheel barrows while the banks fail but this ain't right!!

You cannont tell a private buisness what to do with their money.
Where does this end??  $250,000??  $100,000??

HUH?

They only cap salary if your company goes to teh govt with a tin cup and asks for a bailout.  If you're taking their $, they get to make the rules.  Remember, wall street execs made $18 bill in bonuses alone last year- and many of them were paid with bailout funds.  This bill says "If you must take billions from the govt, you're not going to get rich".

An administration official familiar with the new restrictions 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.

The official, speaking on the condition of anonymity because the plan had not yet been made public, said 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.

If your firm gets $10 billion in govt money - hey, you're now subject to a bit of govt rules.  Deal with it.  name any other 'partner' who would inject 10 billion bucks into your firm and not demand a little oversight.

[Eyeball Chambers]

HUH?

They only cap salary if your company goes to teh govt with a tin cup and asks for a bailout.  If you're taking their $, they get to make the rules.  Remember, wall street execs made $18 bill in bonuses alone last year- and many of them were paid with bailout funds.  This bill says "If you must take billions from the govt, you're not going to get rich".

If your firm gets $10 billion in govt money - hey, you're now subject to a bit of govt rules.  Deal with it.  name any other 'partner' who would inject 10 billion bucks into your firm and not demand a little oversight.

You have more patience than me.  I honestly can't stand to debate with these imbeciles anymore.

[Slapper]

House niggaz are irrational.

[Slapper]

What's really puzzling is that something that makes simple sense, like putting caps on the bonuses the executives of these companies receiving taxpayer's money, is somehow repackaged by the Fox network to seem like it's another stepping stone for the unstoppable and unchangeable mutation into Communist America.

What's even sadly funnier is how these "tools" then pass on the message on forums like these, completely missing the point and ending up sounding like total morons.

[Eyeball Chambers]

What's really puzzling is that something that makes simple sense, like putting caps on the bonuses the executives of these companies receiving taxpayer's money, is somehow repackaged by the Fox network to seem like it's another stepping stone for the unstoppable and unchangeable mutation into Communist America.

What's even sadly funny is how these tools then pass on the message on forums like these, completely missing the point and ending up like total morons.

It boggles my mind... 

[240 is Back]

You cannont tell a private buisness what to do with their money.

mm72,

how much of YOUR taxpayer dollars, do you think the CEO of Citibank should receive?

[CQ]

You have more patience than me.  I honestly can't stand to debate with these imbeciles anymore.

Some aren't looking for debate, just to flame.

Of course if they take gov handouts, why should some CEO take 5 million on that as salary? Want to make 5 million, dont take charity simple.

That is welfare as it finest. People complain about some ratty chick with 3 kids - these CEO's got more welfare then millions of those women will see combined in their lifetime.

[headhuntersix]

Yeah these guys didn't work their asses off in school did they...no they just appeared as CEO's right. Uncle Sam shouldn't be bailing these guys out anyway. But the fucktard u idiots elected shouldn't be saying things like "this isn't the time for profits".  These guys should be fired and the next batch should be encouraged to work their asses off to do well and turn their companies around.

[Soul Crusher]

This is a complete farce.

All the "execs" will do is classify themselves as "managers" and be able to reap bonuses like they get now.  You fools have no idea what a scam this is.

[shootfighter1]

If a company asks for a large tax payor bailout from the gov than its the gov's rights to make demands.  Otherwise, its important for the gov to stay out of the private sector unless laws are being broken.  This ruling sounds reasonable to me because it applies only to firms that asked for large bailouts.

[mightymouse72]

Yeah these guys didn't work their asses off in school did they...no they just appeared as CEO's right. Uncle Sam shouldn't be bailing these guys out anyway. But the fucktard u idiots elected shouldn't be saying things like "this isn't the time for profits".  These guys should be fired and the next batch should be encouraged to work their asses off to do well and turn their companies around.

Finally a voice of reason.
These dumb liberals here would rather insult.

Of course it makes sense for the gov't to tell them what to do with the money.  Which is why they shouldn't take the money.  It's their own fault. 

Are you liberals saying they souldn't make ANY money? 
If you take a loan from a bank, do they govern what you do with?

I agree it is a scam and the fat cats are using it to the fullest extent.  But the president does not say how much money someone can make.  end

[CQ]

If a company asks for a large tax payor bailout from the gov than its the gov's rights to make demands.  Otherwise, its important for the gov to stay out of the private sector unless laws are being broken.  This ruling sounds reasonable to me because it applies only to firms that asked for large bailouts.

Exactly.

[Soul Crusher]

If a company asks for a large tax payor bailout from the gov than its the gov's rights to make demands.  Otherwise, its important for the gov to stay out of the private sector unless laws are being broken.  This ruling sounds reasonable to me because it applies only to firms that asked for large bailouts.

Of course i agree with you in principle, but that is not how things actually work.

The "executives" are not the only ones who make mega millions on wall street. 

The "rain makers" and the "middle managers" get millions and millions to bring in business, write loans, bring in M&A work, etc.

The execs will simply resign at that position and reclassify as a "manager"

This is all style and no substance at all.

THESE BANKS SHOULD BE ALLOWED TO FAIL!

NO TO TARP!

NO TO TARP 2!

NO TO "WELFARE STIMULUS!

[headhuntersix]

After looking at this thing more after my initial comments, I'm sorry but Obama should not be dictating who gets what. Do u honestly think it stops here. Why am I going to work hard if I'm not going to get the big money? This is only in affect until the cash is paid back but it sets a bad precedent.

[240 is Back]

After looking at this thing more after my initial comments, I'm sorry but Obama should not be dictating who gets what. Do u honestly think it stops here. Why am I going to work hard if I'm not going to get the big money? This is only in affect until the cash is paid back but it sets a bad precedent.

I think it is the best idea he's had all week.

I'm PISSED that CEOs make $50mill bonuses while they "need" $50 Bil in bailouts just to stay in business.  Most americans are.  There is no legal recourse - they got our money, plain and simple.

So, Obama said "No again".  This will make CEOs - the decision makers in firms - hesitate and think abuot their own self-interest before getting in line with the tin cup.  many of these companies didn't NEED the cash - as illulstarted by the fact some took the $ and used it for NEW acquisitions of other poor banks.  They actually used the bailout $ to buy up some new shit.  Soyeah, not all banks needed it.

This will limit some abuses.  And if a firm doesnt like it - hey - shut the fuuuck up and stop asking for handouts. 

pathetic welfare defense here.  MM called this "If this isn't the start of socialism...."... hell, the bailouts themselves were the start of socialism.

[Slapper]

After looking at this thing more after my initial comments, I'm sorry but Obama should not be dictating who gets what. Do u honestly think it stops here. Why am I going to work hard if I'm not going to get the big money? This is only in affect until the cash is paid back but it sets a bad precedent.

Methinks you're missing the point by a mile.

Chances are you will NEVER make the "big money". You will still have to work hard though.

Now, put yourself to better use, go kill a cockroach or something.

 

[headhuntersix]

I make plenty, but not Wall Street money and never will while working for Uncle Sam...but if I'm on Wall Street, I'm trying to retire at 45 to my own Island. If Barry gets his way, I have no real incentive do I?

[CQ]

This will limit some abuses.  And if a firm doesnt like it - hey - shut the fuuuck up and stop asking for handouts. 

pathetic welfare defense here.  MM called this "If this isn't the start of socialism...."... hell, the bailouts themselves were the start of socialism.

Great points

[CQ]

I make plenty, but not Wall Street money and never will while working for Uncle Sam...but if I'm on Wall Street, I'm trying to retire at 45 to my own Island. If Barry gets his way, I have no real incentive do I?

Actually, you can buy your own island down here for like $50,000 it isn't as expensive as people think, Wall Streeters will be fine

[Slapper]

I make plenty, but not Wall Street money and never will while working for Uncle Sam...but if I'm on Wall Street, I'm trying to retire at 45 to my own Island. If Barry gets his way, I have no real incentive do I?

But you're missing the point again. This is not about incentives. This is about .005% of the population pushing to get paid A LOT more than they are actually worth. You and your incentives getting mixed into the argument is inconsequential, because the inmense majority of Americans (and that includes you and I) will never make 1, 2 or 50 million in one year.

This is someone else's beef.

Now, why are you defending their greed?

[shootfighter1]

The TARP has been a huge mistake and we should have learned from it.  Instead, we are giving more money to them (another $350 billion coming).  Even though there will be more restrictions on the money, I wholeheartedly disagree with giving them our tax money...but if the companies beg for it they must learn there will be restrictions and demands placed upon them.  Some businesses must fail and reorganize.

[headhuntersix]

But you're missing the point again. This is not about incentives. This is about .005% of the population pushing to get paid A LOT more than they are actually worth. You and your incentives getting mixed into the argument is inconsequential, because the inmense majority of Americans (and that includes you and I) will never make 1, 2 or 50 million in one year.

This is someone else's beef.

Now, why are you defending their greed?

I'm not......I'm very concerned with a "community organizer" telling anybody in this country how much they can make. I have no right to tell u how much u can make...and neither should Uncle Sam. I fully understand the idea of taxpayers money etc...but we should not be bailing em out nor regulating salaries.

[Slapper]

I'm not......I'm very concerned with a "community organizer" telling anybody in this country how much they can make.

He is only telling people WE GAVE MONEY TO at this point. He has not, aside from expressing personal opinion (which polls show to be the opinion of the majority of Americans by the way,) made huge bonuses to a handfull of individuals illegal. Note: That handfull of individuals isn't YOU or ME. Hence we have nothing to do with this issue unless your money and my money enter the picture, which has, hence WE (aka-in your language-community organizers) get to tell the executives how to spend our money. You try going to a bank, getting a mortgage for a house and then, once the money is given to you by the bank tell them you've changed your mind and you're spending it on a vacation to Bora Bora and a nice Bentley. Does the bank have a right to tell you what to do with the Bentley and the vacation to Bora Bora? You betcha!

I have no right to tell u how much u can make...and neither should Uncle Sam. I fully understand the idea of taxpayers money etc...but we should not be bailing em out nor regulating salaries.

Right, but that is precisely the point: The money has been paid out. Turn the page. The question now becomes "is this money being spent wisely"? The answer is yes in some cases and no in other cases. Hence the corrections. This is new ground for everyone. We definitely want to avoid situations like the ones in some European countries, where unemployment has gone up 5-10% in a matter of weeks.

What is the other option you may ask? Well, you and I can stand in soup lines for a couple of years waiting for the "free market" to come to the rescue.

[Fury]

But you're missing the point again. This is not about incentives. This is about .005% of the population pushing to get paid A LOT more than they are actually worth. You and your incentives getting mixed into the argument is inconsequential, because the inmense majority of Americans (and that includes you and I) will never make 1, 2 or 50 million in one year.

This is someone else's beef.

Now, why are you defending their greed?

Outside of the CEOs, these Wall Street guys are usually paid on performance. Most analysts have a base salary between 50-75k and a 50-100% bonus potential. The rain makers get the bonuses.

Some of these CEOs like Thain need to get a grip of reality, though. Guy was actually asking for a bonus for brokering the BoA deal, which an underling actually did.