The fact that the government telling CEO's that receive bailout money that they can't be paid any more than $500,000 a year will no doubt be wildly popular with Democrats, liberals, populists, and probably even some conservatives.
But if they can dictate how much a CEO can be paid, why not every other employee at the company? What's to stop them? Who will stop them? Do you want some bureaucrat telling you how much you're worth?
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.
President Obama and Treasury Secretary Timothy F. Geithner plan to announce the executive compensation plan on Wednesday morning at the White House.
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. They come amid rising public fury about huge pay packages for executives at financial companies being propped up by federal tax dollars.
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.
No doubt it will never get to the point that the feds would be able to dictate to a company how much to pay each and every worker, right? Never happen, not in a million years.
Glad you're so sure of yourself.
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