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Obama looking into capping CEO pay for all financial institutions

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WASHINGTON: The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

The outlines of the plan are expected to be unveiled this week in preparation for President Barack Obama's first foreign summit meeting in early April.

Increasing oversight of executive pay has been under consideration for some time, but the decision was made in recent days as public fury over bonuses has spilled into the regulatory effort.

The officials said that the administration was still debating the details of its plan, including how broadly it should be applied and how far it could range beyond simple reporting requirements. Depending on the outcome of the discussions, the administration could seek to put the changes into effect through regulations rather than through legislation.

One proposal could impose greater requirements on the boards of companies to tie executive compensation more closely to corporate performance and to take other steps to assure that outsize bonuses are not paid before meeting financial goals.

http://www.iht.com/articles/2009/03/22/america/22regulate.php

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Posted · Report post

I hope it works, but I doubt it. Those companies have too much money involved in congress and such for this to go through.

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Posted · Report post

Its popular right now and also a very slippery slope.

I had this thread well over a year ago about CEO pay.

The big however is where does it stop? Who gets the say in that? Unintended consequences are tough down the road.

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Posted · Report post

misdirected hostility

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Posted · Report post

For companies that took federal funds, or for all of them? Can't see how they could legally cap pay for a financial institution that didn't take the money.

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I suppose that the government could make Executive pay another reviewable point for government contracts, but really, how could we have the CEO of Toyota not have a cap, but the CEO of Ford have to have one?

Banks may be a different animal though - at the very least, change bonus programs so that the top execs get money taken away from their "normal" income for poor performance or other indexes like prudent investment stategeries - kind of like if the salesmen do not sell cars, they don't make their money.

I don't know how it could be done though...

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Posted · Report post

all banks.

You know, to prevent this mess from happening again. Wait, exec pay didn't have anything to do with this mess. What were we talking about again?

Misdirected hostility.

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Posted · Report post

If you're going to do that, how about ceilings on what an athlete can make? Or a movie star?

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If you're going to do that, how about ceilings on what an athlete can make? Or a movie star?

surely you can figure out why that's an awful comparison.

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If we are going to regulate this, then I prefer to see different rules regarding the board of directors. Make them actually do their job, instead of being a rubber stamp for the CEO.

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can we please get a cap on tyhe cost of a happy ending? So far this year its gone up 5 bucks average.

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surely you can figure out why that's an awful comparison.

You're right...other than a bit of entertainment...athletes/entertainers provide far less than their worth than someone that's help manage thousands of jobs in a corporation.

Horrible comparison. Fiz...you're a douche.

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