Obama wants to cap pay on bailout banks executives

barack20obama20capitol Barack Obama has decided that it’s a good idea to put a $500,000 salary cap on executive’s who work for the bailout banks.

This is just the beginning people.

Obama said, “In order to restore our financial system, we’ve got to restore trust. And in order to restore trust, we’ve got to make certain that taxpayer funds are not subsidizing excessive compensation packages on Wall Street.” So there you go. We have a figure to judge who is receiving excessive compensation, according to the government. Check out this article from the UK, Obama’s bank error: It is boards that should determine pay not governments.

Let’s say that congress passes this law which caps executive compensation at $500,000 a year for any company receiving bailout funds. Now these companies are in trouble. They have shareholders and employees who are looking to corporate leadership to save their jobs and their investments by turning their companies around and putting them on a path to profitability. The chief executives of these companies are going to have to be experienced and knowledgeable innovators. They will be making decisions that are difficult to the extreme. People with these executive skills are in high demand. There are headhunting firms out there who earn hundreds of thousands of dollars from just one company find just the right person with the right combination of experience and executive talent to lead. People with this talent don’t go cheap … and they certainly don’t go for $500,000 a year.

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