Wednesday, February 4, 2009

Obama Pledges To Take "Air Out of Golden Parachutes"

President Obama announced Wednesday that all executives of companies receiving government aid will have their salaries capped at $500,000.

"Last year's 'shameful' handout of $18 billion in Wall Street bonuses "is exactly the kind of disregard for the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else," Obama said to White House reporters.

The president further blasted executives', calling their exorbitant spending decisions during a financial crisis not only "bad taste," but "a bad strategy." "I will not tolerate it," he said.

Under the new plan, companies paying their executives more than $500,000 will have to do so through stocks that cannot be sold until the company pays back its bailout fees to the government, according to  Bank shareholders will also have a greater say in executives' salary under the new plan.

1 comment: said...

While I believe less is more when it comes to government intervention, on this issue I wholeheartedly agree that income and perks should be limited for those who participate in the bailout until the money has been repaid. A good start but It's time to do more. How about the stocks and other options that could easily add up to millions of dollars?

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