Paying $18.6 billion in bonuses is shameful, but we don’t want the money back. From now on, you have to cap pay at half-a-million a year, but, don’t worry, after the taxpayers save your asses, you can buy the company back from us for pennies on the dollar and be even richer.
President Barack Obama capped salaries for senior executives at financial institutions receiving government assistance at $500,000, the U.S. Treasury Department announced Wednesday.
Additional pay must be in restricted stock that vests after the government has been repaid with interest.
Treasury issued a new set of guidelines on executive compensation after reports of lavish bonuses, extravagant entertaining and even expensive office redecoration have surfaced at institutions that received billions in bailout money. But the new rules will not apply retroactively to existing investments or programs already announced.
“These measures are designed to ensure that public funds are directed only toward the public interest in strengthening our economy by stabilizing our financial system and not toward inappropriate private gain,” a Treasury release said.
How about real regulation? Why not cap salaries as a multiplier of lowest paid worker? Add a kicker of a reduction in salary of the CEO for any reduction in work force. Hire more- get paid more, fire- take the heat. Until these policies actually have some sort of relationship to actual corporate governance, this is nothing but a smoke-and-mirrors PR ploy.