Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Ben Feller, Associated Press Writer
Wednesday February 4, 2009, 8:19 pm EST
WASHINGTON (AP) -- Assailing out-of-touch corporate pay and perks, President Barack Obama on Wednesday slammed a salary cap on top executives from companies that want bailouts
(snip)
Obama's new plan is broad.
Beyond imposing tighter rules on companies that get emergency bailouts, it also requires more openness and limits for healthy banks that tap into public money to expand lending. And it envisions broad reforms in how employees are paid at any public financial institution, even ones that don't get Federal help.
(snip)
The administration also will propose long-term compensation ideas even for companies that don't receive government assistance, Obama said. Among the ideas will be requiring top executives at financial institutions to hold stock for several years before they can cash out.
Well, that's awfully nice of Mr. Obama. He will "propose ideas" to these banks on how they should run their business and pay their people. As if they hadn't had those ideas before he showed up - and rejected them three seconds after they were brought up.
We should keep something in mind here. Governments don't "propose ideas". They make laws, and restrictions, and regulations. And they impose penalties on people who don't obey, as a means of forcing them to do what they wouldn't have done by their own choice.
That's ANY government does, or can do. It is not capable of anything else.
And that's fine for criminals, murderers, people who have been convicted of fraud, etc. Government should do exactly that, to them.
But here we have the President of the United States proposing that government intrude on people who have broken no laws, done no harm, and in fact have run their businesses well, benefitted many people, and provided loads of jobs.
When Mr. Obama says he will "propose ideas" to banks and other businesses that did NOT take bailout money, you can expect the banks to read the hidden message loud and clear: If you don't take our "suggestions", we will eventually start imposing them on you by force, so you'd better listen now.
Did anyone believe the people now in power, don't intend to take over more and more American business and tell them how to run things?
Obama has been in office less than three weeks, and he's already claiming the power for government to decide how much pay private-sector employees get.
Will this be a one-time-only thing? Will he relinquish this power as soon as the bailed-out companies get back on their feet?
I think the goal is probably to shrink the gap between top executive compensation and lowest-paid worker pay - something like 400% now, the highest in the world. Many CEOs arent as dedicated to their companies (and their shareholders) as they are to the game, so that leads to abuse. It's probably about that... and I'll watch with interest to see how on earth this could come about. Possibly by strengthening the Shareholders Vote on Exec. Compensation Act... and bonuses and other perk-type compensation more strictly tied to the company's returns that year... golden parachutes tied to performance..."Among the ideas will be requiring top executives at financial institutions to hold stock for several years before they can cash out."
I dont know, should be interesting.
One problem with trying to control the reason for living of people who live for money is there is a BIG payback-style backlash later, once the reformers are gone. So meddling this way wouldnt be in the country's best interests in the long run - it'd be back to removing all restrictions, all regulation.
Last edited by delusianne; 02-05-2009 at 03:03 PM..
Reason: added quote and parachute thing
You mean you haven't heard about Article II., Section 5. of the US Constitution? It was thought to be a lost document, but it was recently found in a vault. It states:
The President shall have power over all commerce, and all entities involved in commerce, to determine just compensation for all parties.
Well one has to wonder what rules will be imposed into everybodies lives such as healthcare,if the government will provide you care maybe they will force to live a certain lifestyle because they are providing you the service?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
