The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.And this kind of greedy bullshit is the reason companies are dropping like frat-boys' pants in Tijuana.
“That is pretty draconian — $500,000 is not a lot of money, particularly if there is no bonus,” said James F. Reda, founder and managing director of James F. Reda & Associates, a compensation consulting firm. “And you know these companies that are in trouble are not going to pay much of an annual dividend.”
“It would be really tough to get people to staff” companies that are forced to impose these limits, he said. “I don’t think this will work.”
Ironically, the most common-sense thing I've heard from a world leader comes from China's Prime Minister Wen Jiabao.
China’s Prime Minister launched an excoriating attack yesterday on “greedy” executives receiving “astronomical” salaries who should take the blame for the global recession.
In Davos on Wednesday Mr Wen blamed China’s economic woes on US-led Western financial institutions, criticising “a lack of self-discipline” and “blind pursuit of profit”.
