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Obama Orders $500,000 Limit on Executive Pay

Ugh. Goodbye free market.

Feb. 3 (Bloomberg) -- President Barack Obama will announce tomorrow that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive federal rescue funds, an administration official said.

Any additional compensation will be in restricted stock that won’t vest until taxpayers have been paid back, said the official, who requested anonymity.

The unprecedented steps -- which also include restrictions on corporate jets, office renovations and holiday parties -- come amid an outcry over an $18.4 billion bonus payout in 2008 to executives. The protests have been building since October when Congress passed a $700 billion financial-rescue plan.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCE.mDV6...

How long until he requires all of us to wear Mao suits?



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Good

Obviously the bailouts are a stupid, counterproductive, criminal practice but if a company is taking taxpayer money to bail its @$$ out of trouble then the company executives should be thankful their not having to relinquish their jobs as part of the deal.

If they don't want the restrictions, they don't need to take the bailouts. But they will, because we're paying off all their bad debt for them and getting out of it scot free. Wall Street and the banks are taking over the world here. Makes me want to puke.

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Live Free or Die - Amen to that

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Live Free or Die - Amen to that

I hope they impose all kinds

I hope they impose all kinds of restrictions on people that take bailout money. Hopefully, it becomes so strict that no one would want bailout money.

Commentary: Penalties absent from new pay cap rules

The story

All this week, we're focusing on President Obama's promise of transparency and accountability and to that end, we applaud his announcement today of a pay cap for corporate CEO's taking bailout money.

But what we didn't hear anything about today -- as the president, Treasury Secretary Tim Geithner, and Press Secretary Robert Gibbs praised the virtues of the new rules -- was talk of penalties. Real penalties for those who have mishandled the money and betrayed our trust. Penalties for those who may mishandle our money in the future.

For full article and video go to:

http://edition.cnn.com/2009/POLITICS/02/04/campbell.brown.wh...

Much of this is just talk.

Only a few CEOs have been capped because it only applies to a few banks. It is an attempt to placate the public who are saddled with paying for all this bailout money. Lots of talk and nothing really accomplished. And there will be loopholes for the CEOs to earn their usual millions when the dust settles. I am inclined to look for what is really going on behind the smoke screen . This is getting people used to socialism and central government dictatorship.

Lots of talk but few

CEOs are affected.

"For example, the $500,000 limit applies only to banks that receive "exceptional" assistance, and only three seem to fit this criterion so far: Bank of America, Citigroup, and troubled insurer American International Group.
http://www.theglobeandmail.com/servlet/story/LAC.20090205.IB...

Well, price controls often

Well, price controls often result in shortages...

If you were a CEO who was accustomed to earning millions and millions of dollars per year, would you simply settle for $500k? My guess is that the high priced CEOs will move on to 'greener' pastures. Those greener pastures could be competitors that did not accept TARP money or maybe even new privately owned companies.

This wage cap on companies that accepted bailout money could result in those companies being unable to attract the most skilled CEOs, making them less competitive.

I'm thinking there may be many more problems on the horizon for the banking sector....

...

northstar's picture

I think it'll backfire

I envision some of the bailout takers packing up and leaving the country with their loot and leave even a bigger mess for us to deal with.

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People worldwide support Dr. Paul too :-)
http://www.pollingmatrix.com

Real eyes realize real lies

We want our country back

Every year is a year for Ron Paul!

How would you like your government to tell you how much your can

How would you like your government to tell you how much your can earn? This is ridiculous! This is not capitalism anymore! The U.S had been fighting hard against the communist but now had gradually becoming one.

fuck...how can ENTREPRENEURSHIP function in such environment? It's CRAZY!

The US implemented wage

The US implemented wage controls over 90 years ago. The government has been telling us how much we can make ever since. Most people know of these wage controls by another name though, and as a result of it being called by another name many don't realize that their wages are set. The name it is called is "Graduated Income Tax". We've not been fighting Communism, we've have been a Communist Country for 140 years. We've been fighting to be the Dominant Communist Country.

"Marx argued that capitalism, like previous socioeconomic systems, will produce internal tensions which will lead to its destruction.[2] Just as capitalism replaced feudalism, capitalism itself will be displaced by communism, a stateless, classless society which emerges after a transitional period, the 'dictatorship of the proletariat"

Anyone that cannot see that this is EXACTLY what is and has happened is blind. If one takes the time to study the writings of Marx it is easily seen that he is correct, Capitalism leads to Socialism, then to Communism.

The 'dictatorship of the proletariat" is merely another term for Democracy. Democracy IS communism, and we've been spreading Democracy over the world for many many decades. Democracy, being nothing more than Double Speak for Communism. In other words, we've been fighting Communism to make the world safe for Democracy. See how that works? Double Speak, the multiple languages of Babble that confused all the people.

As such, Capitalism should be abhored, not worshipped, as Capitalism is the path to Communism. What we should be seeking is just plain non Capitalist Free Market. But people will never want that, they want to be able to make money from their money, to make money without labor. We even worship the idea of making money for nothing.

----------------------------------------------------------
"Ehhh, What's ups Doc?" Bugs Bunny
"Scwewy Wabbit!" Elmer Fudd

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"Ehhh, What's ups Doc?" B.Bunny "Scwewy Wabbit!"E. Fudd
People's Awareness Coalition: Deprogramming Sequence

Well to be fair...

if we give them billions of dollars and take a majority stake in the company, then we should be able to tell them what to do -- But why we would ever give them the money and take their worthless stock in the first place is beyond me.

It's national socialism.

No one element of this government is constitutional anymore. While thousands of us were wringing our hands over the Amero, chemtrails, and other such things, our system was converted openly to fascism overnight by the bankers and their puppets in both parties.

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

Come on Now

If they cap it at $500K then there will be much more Swiss Bank accounts, much more hidden "benefits" -- It's like taxing the rich -- it's a joke because every single time "loopholes" are created into the process.

The problem is that these "hidden" salaries and tax diversions cost a lot of money -- the wealthy wont want to pay for it, if they do then there's less money for Entrepreneurialism and we no innovation comes out of middle and poor income brackets -- this is fact. So, it means less money in the middle wage community.

You gotta think outside of the box

I don't see a problem with

I don't see a problem with this. The banks are taking federal funds and they now have to take federal rules. There are banks (smaller community-owned banks) who are rejecting the bailout and thus their CEO's will likely not make 500,000 a year until the markets recover. When(if) they do recover then those CEO's will not be restricted by the cap. So any CEO's bank that takes fed funds do so at their own demise, not by force.

As much as I hate the Cult of the Presidency, we have to realize that many decisions that come out of the WH (no matter how shallow or complex) are deemed symbolic in nature. This is what we call leadership. Some of these companies need to be nudged in the right direction.
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I can know of no greater functional movement than a 600lb deadlift. Except a 700lb deadlift. Cuz when you are that strong, it's functional.
www.crossfit.com

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I can know of no greater functional movement than a 600lb deadlift. Except a 700lb deadlift. Cuz when you are that strong, it's functional.
www.crossfit.com

What a joke

From the article:

"The new pay guidelines won’t be retroactive to companies that have already taken money from the Troubled Asset Relief Program, the Treasury Department program to buy bad assets from banks."

In other words, this is just a feel good measure designed to pacify the angry public. The government gave the corporations just enough time to to get their Christmas bonuses and expensive perks AND THEN said "Okay, you had your chance, now we need to look serious." As if it makes a freaking difference now! Since the guidelines are retroactive, how many people is this realistically going to affect? The greedy executives already got what they wanted.

I would blame Congress for not putting these guidelines in the legislation in the first place, but that point is irrelevant because Congress SHOULDN'T HAVE PASSED THIS FREAKING BAILOUT IN THE FIRST PLACE.

I am astonished at the

I am astonished at the amount of people who think the role of the federal government is to dictate what someone in the private sector can make. are you that stupid? Does RP have to tell you what to believe or can you figure it out for yourselves. the bailout is wrong and salary caps are socialistic. Who gives a rat's behind how much an exec makes. It is the responsibility of the shareholders to make a CEO accountable and fraud is already against the law. Some co.s were forced, I say forced to take the bailout. Wake up people!

It's not dictating. It's voluntary.

The CEO voluntarily agrees to have his salary capped in order to receive the money. A salary cap is not socialistic unless it's imposed. It's not retroactive, and those that were forced to be bailed out aren't subject to the cap.

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The Fed is not a private bank. PRIVATIZE THE FED!!!
"The Federal Reserve Banks should simply be regarded as governmental agencies." -Murray Rothbard
"I now call the Federal Reserve the fourth branch of government." -Ron Paul

Companys that accept

Federal bailout money have to accept some conditions. 500 thousand is probably too much for most these incompetent bozos.

HELLOOOOOO COMRADES! "When

HELLOOOOOO COMRADES!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

meekandmild's picture

I'll take $ 500,000

I can probably run a corporation into ruin too.

Do you guys get it?

Eventually, there will be no choice for the banks. Take the bailout and submit to government control OR perish.

Those will be the only options. Submit or Die. That was the plan all along, to create one national (global???) banking system under government control. The people would NEVER accept this, so the FED created the "Crisis" as a means to implement the "solution".

The "crisis" will not be averted until most all of the resisting institutions are terminated or submit to the bailout.

By golly, you got it! There is some intelligence out there!

*cookie*

"There can be only one permanent revolution - a moral one: The regeneration of the inner man."
—Tolstoy

"The body is but a vessel for the soul,
A puppet which bends to the soul's tyranny.
And lo, the body is not eternal,
For it must feed on the flesh of others,
Lest it return to the dust whence it came.
Therefore the soul deceives and despises."

Bingo!

Now stop the gears!!!

World-wide Workless Week!!!

Stop submitting to slavery! At least for a week!

I agree HotRod!!

This is what my husband and I have thought for quite a while now!!
also
For those that haven't read Creature from Jekyll Island by G.Edward Griffin..I would highly reccomend it! There is a chapter in there called "The Game Called Bailout" ....its all part of the plan!!!

*****
"I truly wish that real life would no longer surpass the worst excesses of my nightmarish imaginings... Arthur Silber **

"I think we are living in a world of lies: lies that don't even know they are lies, because they are the children and grandchildren of lies." ~ Chris Floyd

The Bright Side

This is good news for all of us trying to explain to others the dangers of Universal Healthcare and any other socialist garbage that people are excited about. We can now with these examples show how you will be treated with Universal Healthcare. "OH, you want that surgery? No, you are not eligible because you violated the No skydiving rules" or whatever rules they want to make for you to have Universal Healthcare. This salary limits shows how when government gives the money it makes the rules on everything. With Universal Healthcare it will be rules on how you live your life that somehow affect your health (which is most everything).

Thanks Obama for making the case for NO Universal Healthcare.

Actually, I don't see a problem

When they took the corporate welfare, they caused themselves to be subject to welfare rules. But I don't believe that's what's really going on ...

As it's the corporations that control the government (not the other way around), this silly little "control" is nothing but pe-planned window dressing for public consumption. Believe me, the crooks at the top have a million ways of compensating themselves off the books (tax free!) ... and Barry Obama is in on the trick. However, it plays well to Barry's constituency ... to them, he's actually doing something to protect their interests. Yeah, right.

I wouldn't start shedding any tears over the free enterprise system just because of this! The free enterprise system is a figment of the imagination. We live in a world of corporate fascism.

Atlas shrugged coming true

Enough of this Atlas Shrugged drama.

1. Call in the bailout loans.
2. Use the proceeds to pay off the deficit.
3. End the bailouts.
4. Let the clowns go bankrupt if necessary.
5. Let the free market sort out the mess.
6. While we're at it, end the Fed.

‘Each individual is separated from others by a "taboo of personal isolation"...this "narcissism of minor differences"'
--Sigmund Freud

To anyone stupid enough to say this is good

This whole economic crisis was ENGINEERED. The government planned it and executed it. You have to do the research to know this..stop playing dumb. Celente, our greatest economic analyst just stated this: http://www.youtube.com/watch?v=MU69d5UUQ8I.

So the government deliberately did this to every company on earth essentially since this is a global crisis. If this company wants to survive they are FORCED to accept Obama's dictatorship to exist in The New World Order that is coming out of this chaos.

This is blackmail on the grandest scale imaginable and they are using the ignorant Americans anger to drive the Socialism/Communism home because they are too stupid to figure anything out.

"There can be only one permanent revolution - a moral one: The regeneration of the inner man."
—Tolstoy

"The body is but a vessel for the soul,
A puppet which bends to the soul's tyranny.
And lo, the body is not eternal,
For it must feed on the flesh of others,
Lest it return to the dust whence it came.
Therefore the soul deceives and despises."

well, we can't really say

well, we can't really say goodbye to something we have yet to truly say hello to.

the good news, is they are

the good news, is they are trying to respond to the public outcry, meaning, people are getting angrier. and when this doesnt work and people get madder, it will be interesting.

Yeah, hooray!

The 'government' responding to the cries of the mob to impose socialist policies on companies that ought to be governed by the free market is such a great solution.

Let me help you with something...
LESS GOVERNMENT AND GOVERNMENT INTERVENTION IS WHAT IS NEEDED, NOT MORE.

C'mon... think about it. Is more government intervention in any area a thing to be welcomed?