Posted on 06/10/2009 11:46:07 AM PDT by Red in Blue PA
WASHINGTON (AP) -- Treasury Secretary Timothy Geithner says the Obama administration doesn't want to place caps on executives' pay -- even though it believes excessive compensation led to risk-taking that contributed to the financial crisis.
Geithner said the administration will seek legislation that will permit shareholders to vote on executive pay packages, but the results would not be binding on boards of directors. The administration will still restrict compensation at companies that are receiving taxpayer assistance through its $700 billion financial bailout program.
(Excerpt) Read more at finance.yahoo.com ...
Executive pay is set by the compensation committees and these are NOT accountable to Shareholders as they should be.
And what about those banks that were forced to take and have not been allowed to pay back the bailout funds?
Pay Czar is appointed. Thats all we need to know. Czars are not accountable.
I don’t think it would matter a bit, Red. When it comes time for shareholders to decide whether they want (1) a CEO who can earn the company $1 billion extra and be paid $15 million, or (2) a CEO who lose the company $1 billion and earns $500,000 ...
The choice will be clear.
They don’t need to actually cap anybody’s pay; only need to have the threat there, and change expectation that they indeed can do it, legality notwithstanding. Fascism at its best.
Fire the TaxTurbo idiot already!
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