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Thursday, 5 February 2009

US salary cap on executives

WASHINGTON - THE US government will set a salary cap of US$500,000 (S$751,709) for top executives at companies receiving federal economic bailout funds, an administration official said on Wednesday.

President Barack Obama and Treasury Secretary Timothy Geithner were expected to make the announcement on Wednesday at the White House, the official said privately.

She said the measure would apply to executives at companies receiving exceptional funds', but did not offer further details on its implementation.

On Tuesday, Mr Obama previewed the announcement in a series of television interviews, playing into public anger at elevated finance industry salaries at a time of deep economic crisis.

'One of the things that we're going to do tomorrow is talk about the need to control executive compensation for companies that are taking money from the federal government,' he said in an interview with NBC.

"If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog." -- AFP

2 comments:

Suggestions4Obama.com 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?

Ted said...

While it should go without saying that even a legitimate President’s “ordered” $500,000 pay cap is an unenforceable intrusion into the private sector, as if that weren’t enough, Obama LACKS EVEN OSTENSIBLE AUTHORITY to issue the order UNTIL HE OVERCOMES “RES IPSA LOQUITUR” BY SUPPLYING HIS LONG FORM BIRTH CERTIFICATE AND PROVING HIS ELIGIBILITY TO BE PRESIDENT UNDER ARTICLE 2 OF THE US CONSTITUTION.

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