Obama Slashes Pay For Corporate Bigwigs
Some corporate executives making multi-million dollar salaries are about to take a huge pay cut, and I can't say that I feel sorry for them.
Today, President Barack Obama announced that executives who run companies receiving federal bailout money—a.k.a. our money—will have their pay capped at $500,000. If companies receiving federal bailout money want to pay their executives more than $500,000, they will have to add to their compensation through stocks that the executives can't sell until their companies have paid back the money they've borrowed from the government.
FYI: Executives at companies that have already received federal bailout money will be exempt from these changes.
Not surprisingly, the move to limit executive compensation at companies receiving massive amounts of taxpayer money comes in response to public outrage. How many of us have wondered why executives at Wall Street investment firms and banks are still making mega millions while taking handouts from the government?
It's galling. We're in the midst of what economists are calling the worst economic crisis since the Great Depression, and Wall Street executives are still raking it in. In fact, last year Wall Street handed out more than $18 billion in bonuses while the stock market tanked, and they got money from us to stay in business. Is this fair?
Even in the good times, executive compensation is outrageous. In a recent op-ed column for The Washington Post, Eugene Robinson notes that the average CEO makes 344 times as much as the average worker, according to the Institute for Policy Studies and the non-profit United for a Fair Economy.
Now it's your turn to vent: What do you think of President Obama's move to limit executive pay at companies receiving help from the American taxpayer? Beyond that, do you think corporate executives make too much money in general?
(Image courtesy of Getty)