Bailouts and Paycaps: Two Opinions
This morning, President Obama will be mandating paycaps for CEO's who are taking bailout money. Obama told CNN the other day that these companies have "...got responsibilities not to live high on the hog..."
What do YOU think?
2/3/2009 11:57:05 pm
surely, for $400,000-$500,000 you can find someone smart enough to figure out the problem. right? maybe someone younger that is very bright and doesn't necessarily think they are worth more money per year than the president.
My opinion is that it is a great idea. At the same time these guys are looking at huge pay cuts with not a huge effect on their quality of life. If the CEO's of the 3 biggest auto companies in the country can work for a year for a penny, imagine how much money the CEO's of banks make. Its is going to hurt, yes going from anywhere around $50,000,000-$100,000,000 to around $500,000 is going to hurt their kids trust funds, they may have postpone the purchase of their 2010 Murcielago, but these guys' lives are not going to change. Its a good idea, but its simply a statement. Not to mention Salary caps in the US only apply to SALARIES. Bonuses and Commissions are not covered by that umbrella. Thats why baseball players ofter make more than the MLB salary cap.
2/4/2009 02:27:14 am
I have mixed emotions on this. On the one hand, it does seem that failing companies who are getting bailed out by the taxpayers should have the responsibility to use those funds wisely, and limited executive pay would be a good move. On the other hand, once the government does that, where does it end? What about attorneys who are in private practice, but consult for these companies? Does the government have the right to tell them how much they can make, even though they're not employees? We all know that once government takes power, it never gives it up. How long will it be before some bureaucrat is deciding how much doctors should be paid? Or store owners? Or web designers? I'm concerned about the precedent this sets. I can just see some Democratic congressman deciding that pro football players should be limited to a certain amount, or musicians, or authors. From there it's a short step to telling a high school senior, "We need more auto mechanics, so that's what you're going to be."
John Kepler Lewis
2/8/2009 09:22:01 pm
The inherent problem with this plan is that it is just more government encroaching into private industry, thus continuing our steadfast march into fascism. As evidenced by some of your previous replies, this is a simple case of wealth envy, that in reality means absolutely nothing in the long run. These paycaps say nothing of stock options, corporate benefits or other compensations that will push executives salaries back into the 8 figure range.
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Nathan Key likes to think about faith and philosophy and talk about it with others. He lives with his family in New Hampshire. He doesn't always refer to himself in the third person.