Tuesday, February 03, 2009

speaking of FAIL... ...WIN! 

Epic WIN:

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.


“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.”

Sucks to be you guys. Keep a sharp eye out for even more human interest pieces in the NYT about how hard it is to be less rich.

When BO did the presser yesterday and wagged his finger at the execs for their planes and general pimpitude, I thought that was we were gonna get, some pious finger-wagging.

This is very good though. Hats off to you, sir.

(h/t hiaw)


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