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I guess they've done away with the executive pay caps??


Guest kawikaho
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It would not surprise me.  No one has read the entire bill before the vote.  Also, the financial services industry has greased the skids in both parties.  It is a shame the industry that needs the most reform and was a major cause of the crisis will not be held accountable because they have paid off or convinced those in charge that they are the only ones who can save the system.  I think we should have John Bogel as treasury secretary not an Wall Street insider who has a vested interest in maintaining the current costly and wasteful system of intermediation between investors and users of capital.

 

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via WSJ:

http://online.wsj.com/article/SB123457165806186405.html?mod=testMod

The giant stimulus package that cleared Congress Friday includes a last-minute addition that restricts bonuses for top earners at firms receiving federal cash -- including those that already received it -- more severely than the Obama administration's previous pay limits.

 

The most stringent pay restriction bars any company receiving funds from paying top earners bonuses equal to more than one-third of their total annual compensation. That could severely crimp pay packages at big banks, where top officials commonly get relatively modest salaries but often huge bonuses.

 

As word spread Friday about the new and retroactive limit -- inserted by Democratic Sen. Christopher Dodd of Connecticut -- so did consternation on Wall Street and in the Obama administration, which opposed it...

 

In contrast to executive-pay rules announced recently by the White House, those in the stimulus bill -- which cleared the House and Senate Friday and is headed to the White House for President Barack Obama to sign into law -- doesn't apply just to top executives but could reach into the ranks of highly paid traders and department heads. The rules apply to any company that has received aid under the bailout program since it began in October.

 

 

 

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Tariq,

 

I was not able to read the whole article but based on the first paragraph, I am releived that at least some provision was put into this bill to limit pay. Of course, one wonders about the quantity and size of the loopholes in this bill (if bonuses are capped as a percentage of the individual's salary, then are salary increases permitted? If so, then I'd be wiling to see some pay raises doled out). Also, what of the unintended consequences? It will be interesting to see how this plays out.

 

-Crip

 

 

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