Update: Cloak and Dagger alert! Executive pay limits can be waived!:
Those same rules, however, would be voluntary for most recipients of government aid. Companies could waive the restrictions by informing shareholders.
Get that? Voluntary, just inform shareholders you are handing over huge wads of cash to people who ran your company into the ground to the point you need taxpayer money...wala, not a problem.
This is a shocker. Obama to Limit Executive Pay at Companies Getting Aid.
About time!
President Barack Obama will announce today that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive significant federal assistance in the future, responding to a public outcry over Wall Street excess.
Any additional compensation will be in restricted stock that won’t vest until taxpayers have been paid back, according to an administration official, who requested anonymity. The rules will force greater transparency on the use of corporate jets, office renovations and holiday parties as well as golden parachutes offered to executives when they leave companies.
This is a nice touch actually because it turns executive stock options almost into a pre-ipo situation where the only way they can reap rewards is to actually do their jobs.
Unfortunately it is not retroactive and even more unfortunately the real issue, $1.8 trillion of US taxpayer dollars are at these banks when most believe they are still insolvent regardless....
But it assuredly is a start and a fantastic message to executives everywhere.
incentive
wala, very next day Citigroup wants to pay back some money soon.
Problem is no one knows the true state of these banks, the size of the worthless assets out there or stopping the derivatives/shadow banking system.
Well, I've got a clue with Citibank
Assuming that due to a default on a timeshare property that I haven't paid the maintenance fees on for several years really has damaged by credit score, and I'm now considered subprime status, then Citibank has sold the majority of it's subprime mortgages to Chase.
In fact, I'm finding it (as somebody trying to cut ties with the East Coast) to be rather hard to AVOID JP Morgan Chase. They purchased two of my credit cards, they purchased my mortgage, they even purchased my checking bank account (yes, I was with Washington Mutual).
I'm in the process of changing all of these....
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Maximum jobs, not maximum profits.
will this be written into actual regulations or laws?
and as is it's meaningless with that waiver -- if they tell shareholders they can pay and bonus what they wish, and even if shareholders say no, it won't matter.