CEO salary caps are retroactive in stimulus bill
Do these Democrats realize how bad it is to make regulations retroactive? Some companies, such as Bank of America, take over companies at the request of the Feds and find that they are now in bad shape because of that so they take the government funds. Now they face these stupid retroactive regulations.
The provision, inserted by Senate Democrats over the objections of the Obama administration, is aimed at companies that have received financial bailout funds. It would prohibit cash bonuses and almost all other incentive compensation for the five most senior officers and the 20 highest-paid executives at large companies that receive money under the Treasury’s Troubled Asset Relief Program, or TARP.
Labels: Economics, salarycaps, stimulus
posted by John Lott at 12:57 AM
4 Comments:
What else might there be that we have yet to know of?
So BHO, or should I say his administration objected to this.Is this objection a possible sign of things to come? After all, the Dems control Congress, and this may allow BHO to have plausible deniability...
As to the business end of things here, I see nothing but grief in the future.
I understand the rage that many direct towards those in the higher echelons of large companies, but I also see how the left is using this rage to bolster support from the voters themselves.
If there are any execs who really are good, they will flee to other jobs, and leave those companies for whom they used to work for, in a very major bind.
A no win situation.
I assume that any exec who was worth his or her pay, would adjust to public outcry, and work hard to show everyone exactly what they have done to ameliorate the current situation.
Patience rather than mob mentality probably would have paid great dividends here...
Welcome to Hope and Change folks.
Unbelievable. In any typical contract, the concept of retroactive terms would be laughable.
The CEOs of many companies have had to face Congress and they were defending themselves and their companies.
Why weren't they pointing fingers at Congress and putting Congress on the defensive? They should have been wagging their fingers at the people that just let this happen.
Congress could fix this problem tomorrow; pass the FairTax. With no taxes on any investments or profits, money would pour into stocks, bonds, mutual funds, etc. It wouldn't happen overnight, but it would be better than spending 1 trillion dollars on socialism.
You do realize these "retroactive regulations" you cite are for political purposes, right?
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