Thursday, May 14, 2009

Obama to limit executive pay to non-bailed out companies

The Obama administration has begun serious talks about how it can change compensation practices across the financial-services industry, including at companies that did not receive federal bailout money, according to people familiar with the matter.

The initiative, which is in its early stages, is part of an ambitious and likely controversial effort to broadly address the way financial companies pay employees and executives, including an attempt to more closely align pay with long-term performance.

Among ideas being discussed are Fed rules that would curb banks' ability to pay employees in a way that would threaten the "safety and soundness" of the bank -- such as paying loan officers for the volume of business they do, not the quality
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Oh, this makes perfect sense. The government can assess the quality of the work that employees do in a private company and then regulate their pay accordingly. 

Maybe Obama should be regulating baseball and basketball too, those guys get paid a lot as well. In baseball you can get a huge contract, take steroids and win or lose you still get paid millions. In football a rookie can sign a contract for $40 million in guaranteed money before they even take a snap. What does Obama have to say about that? Is Matt Stafford going to be regulated? How about Jamarcus Russel? Clearly paying that guy millions of dollars should constitute a crime, should we lock up Al Davis for this?

1 comment:

  1. It's not fair for them to make more money than everybody else. It's good that the government is stepping in to balance the amount of money each citizen can make. Why should Joe McBurgerFlipper only make $7 an hour when these guys make millions?

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