Last night I was watching Senator Claire McCaskill on MSNBC’s Hardball, talking about her legislation that proposed a pay limit “to all companies that receive Treasury money.” McCaskill told Chris Matthews that she felt the proposed legislation would get support from the Obama Administration. My reaction to that was that the Obama Administration had damn better support it. I’ve been astounded and disgusted by the reports of corporate excess by companies that have received federal bailout money.
The NY Times reports today that 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.” Hallelujah.
Under the plan, “executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.”
The new rules would be far tougher than any restrictions imposed during the Bush administration, and they could force executives to accept deep reductions in their current pay…
Executives at companies that have already received money from the Treasury Department would not have to make any changes. But analysts and administration officials are bracing for a huge wave of new losses, largely because of the deepening recession, and many companies that have already received federal money may well be coming back.
In his interview on NBC Nightly News last night President Obama said, “If the taxpayers are helping you, then you have certain responsibilities to not be living high on the hog.” Thank you Mr. President.
The NY Times notes that the Obama Administration is not quite as tough as Senator McCaskill’s legislation, but it’s a start in the right direction as far as I am concerned. These fools on Wall Street having been losing money hand over fist for sometime now, the idea that they get these exorbitant salaries while doing so is just beyond the pale.