Obama announces cap on executive pay

[SgtSpike]

The president says annual senior-executive pay must top out at $500,000, one of the new restrictions he announced for financial institutions receiving bailout cash.

Perfect, just what we need! Now, top CEO's are just going to leave to work for other companies where they can actually get paid, the banks will be left with the bottom-of-the-barrel executives, and will continue to go down the toilet, and the economy will decline even further. Thanks, Obama.

Now, for those of you who say that it isn't fair for executives of failing companies to be paid millions after receiving bailout money, I completely agree with you! Which is why those companies shouldn't have been given billions to start with! Any time you mess with the free market, you will just create a bigger mess, and this is a perfect example.[/color]

/rant

Source: Obama announces cap on executive pay - Los Angeles Times

 

[Peter Parka]

Half a million dollars? My heart bleeds for them.

 

[Tim]

Yup, they are all going to quit and go somewhere else.... where exactly are they going to go?

And if they do go, good! Let some fresh new talent in to take their place. I can't believe that you buy into the crap that you can't get a top CEO without spending tens of millions. There are a lot of extremely brilliant businessmen out there that could run anyone of those companies. How long does a fortune 500 company need to lose money and jobs before you realize that just because you are getting $25 million in salary, it doesn't mean you are any good at your job.

 

[Minor Axis]

Yup, they are all going to quit and go somewhere else.... where exactly are they going to go?

Exactly. I heard this stuff extensively during a bankruptcy I had a ring side seat for. "If we don't award ourselves lavish bonuses, then the talent that took us into bankruptsy will leave!!"

 

[BadBoy@TheWheel]

I actually agree....How bad do we want to retain that type of talent?

:24:

 

[Mystic]

Half a million dollars? My heart bleeds for them.

:homo::thumbup

 

[boombala]

Half a million dollars? My heart bleeds for them.

---------------
Yeah mine too; especially since I'm clipping coupons in order to save on groceries and watching them steal my retirement $ from my investments.

Off with their heads !!

 

[SgtSpike]

Ok, look at it from another view. What sort of talented CEO would go work for $500k/year at one of those financial institutions if say, the current CEO was fired or left, when they have plenty of other offers to work for companies and make $5M a year?

I agree that some of the CEO's are complete screwups and don't deserve a penny more than what they've already been paid, but at the same time, you're not going to get a talented CEO to run a multinational corporation and try to dig it out of a hole for $500k a year, when they have an opportunity to dig another company out of a hole and potentially make much more than that at a different company. It's the simple concept of supply and demand, and you get what you pay for.

Face it - not many people want to be a CEO of a huge corporation like that. It consumes your life, will pretty much ensure that whatever family you have is ripped apart, and is generally a living hell. But people do it for the money. Crazy people, because money isn't everything there is to life, but a few people do it nonetheless. Out of those few, even fewer are actually knowledgeable and experienced enough to tackle it, and fewer than that have the decision making skills to not ruin the company. When those few are out on the market, and they have proven themselves by bringing a small startup to a national competitor, other companies take notice and will pay big money to get them onboard.

It's simple economics. When you put a cap on how much one company can pay for a CEO, whether you think they're only worth that much or not, the better talent will naturally run to whoever will pay them the most, which will NOT be the companies in the hole. Heck, if you want to save the financial companies, give them a few million extra to pay their CEO's over the next few years so they can actually attract some talent!

 

[Alien Allen]

This is another idiot idea created by an idiotic govt.

I tell ya what should be done. Get the best General Managers in basketball, football, and hockey where they have salary caps. Pay them to design a plan for how to compensate these CEO's with it based on incentives for doing well. Then make sure there is oversight so the CEO's can not cook the books.

 

[Strauss]

Ok, look at it from another view. What sort of talented CEO would go work for $500k/year at one of those financial institutions if say, the current CEO was fired or left, when they have plenty of other offers to work for companies and make $5M a year?

Well every company in the United States is going bankrupt, didn't you know that? At least that's what the Chicken Little's in the Whitehouse want you to believe.

What will occur is either the CEO's will leave and a second rate CEO will be hired and that will just mean it will take even longer for the company to get out of the hole. Or the current CEO will stay and re-negotiate his compensation to say that he (or she) will accept the cap but once the government loan is paid back and the cap no longer applies you will pay me all the money I should have earned when the cap was in effect.

 

[Alien Allen]

Strauss ya gotta admit that some of the CEO's are/were bloodsuckers

Take the guy who came in to finish of K-Mart not that long ago. These kind are not worth squat. They are the Gordon Gekkos of banking.

I aint no left wing idiot but there has to be something better than the crap that is going on. There are way too many CEO's getting sweetheart deals while they manage the companies into the ground.

Instead of rewarding their firing they need to be cut.

Gotta be something better than what is going on now and that does not include a govt controlled 500K cap

 

[BadBoy@TheWheel]

Well every company in the United States is going bankrupt, didn't you know that? At least that's what the Chicken Little's in the Whitehouse want you to believe.

What will occur is either the CEO's will leave and a second rate CEO will be hired and that will just mean it will take even longer for the company to get out of the hole. Or the current CEO will stay and re-negotiate his compensation to say that he (or she) will accept the cap but once the government loan is paid back and the cap no longer applies you will pay me all the money I should have earned when the cap was in effect.

In my opinion, any CEO without integrity is second rate. Bottom line, my company isn't going bankrupt, we have cash on hand, and a solid line of credit.

Our execs. have had to leverage immediate profit with longevity in a volitle marketplace.

Not every CEO deserves accolades simply because he or she "made it". Just because they made it to the top of the heap, doesn't mean they are without accountability or that they even belong there.

When our CEO was selected, his original task was to get our company in shape to sell, with vision and tenacity, he convinced the board to trust him and he has placed our company in a position of trendsetter compared to companies our size. He is innovative, compassionate and ethical.

He is compensated handsomely for it, but he has also navigated tough waters and turned a sinking ship around. That is what an executive is supposed to do, not rob the safe when nobody is looking.

The total lack of foresight in the thinking that just because your there, your supposed to be there is why we are where we are. Regardless of who's in the White House, we are where we are because of greed and a total lack of fundamental integrity, to defend that type of business pracitce is insane.

At the end of the day, Wall St. came to the American taxpayer to save them, and now it's time for them to suffer some consequence.

Or should we just continue to give them money....And not hold them accountable...Again? I am not saying everyone, just the ones that asked for money....

I find it hard to give anyone creditbility who immediately after sinking an entire economy, says "WE NEED MONEY"

Then take a multi-million dollar bonus, cause...well they could have lost more....But they managed to damage control...

Bullshit

 

[sierrabravo]

Perfect, just what we need! Now, top CEO's are just going to leave to work for other companies where they can actually get paid, the banks will be left with the bottom-of-the-barrel executives, and will continue to go down the toilet, and the economy will decline even further. Thanks, Obama.

shit, now that you said it, you just gave them the idea... :24:

 

[BadBoy@TheWheel]

If you think about it, paying them a modest salary, and giving the rest in stock options is a novel idea, it will give the incentive to be innovative in bringing value to the marketplace again, and come up with good ideas to bring he value of the stock back up.

Their very salary will depend on it

 

[Tim]

In my opinion, any CEO without integrity is second rate. Bottom line, my company isn't going bankrupt, we have cash on hand, and a solid line of credit.

Our execs. have had to leverage immediate profit with longevity in a volitle marketplace.

Not every CEO deserves accolades simply because he or she "made it". Just because they made it to the top of the heap, doesn't mean they are without accountability or that they even belong there.

When our CEO was selected, his original task was to get our company in shape to sell, with vision and tenacity, he convinced the board to trust him and he has placed our company in a position of trendsetter compared to companies our size. He is innovative, compassionate and ethical.

He is compensated handsomely for it, but he has also navigated tough waters and turned a sinking ship around. That is what an executive is supposed to do, not rob the safe when nobody is looking.

The total lack of foresight in the thinking that just because your there, your supposed to be there is why we are where we are. Regardless of who's in the White House, we are where we are because of greed and a total lack of fundamental integrity, to defend that type of business pracitce is insane.

At the end of the day, Wall St. came to the American taxpayer to save them, and now it's time for them to suffer some consequence.

Or should we just continue to give them money....And not hold them accountable...Again? I am not saying everyone, just the ones that asked for money....

I find it hard to give anyone creditbility who immediately after sinking an entire economy, says "WE NEED MONEY"

Then take a multi-million dollar bonus, cause...well they could have lost more....But they managed to damage control...

Bullshit

:clap

If you think about it, paying them a modest salary, and giving the rest in stock options is a novel idea, it will give the incentive to be innovative in bringing value to the marketplace again, and come up with good ideas to bring he value of the stock back up.

Their very salary will depend on it

:clap

And this from a conservative no less...

 

[Tim]

Ok, look at it from another view. What sort of talented CEO would go work for $500k/year at one of those financial institutions if say, the current CEO was fired or left, when they have plenty of other offers to work for companies and make $5M a year?

I think you would be amazed at how many qualified people would absolutely jump at the opportunity to be the CEO of any of these companies. Hell, they would do it for $0 in salary. These CEO's aren't in it for the money, it's all about power and control. That's why the dedicate their lives to their work.

 

[pjbleek]

I think you would be amazed at how many qualified people would absolutely jump at the opportunity to be the CEO of any of these companies. Hell, they would do it for $0 in salary. These CEO's aren't in it for the money, it's all about power and control. That's why the dedicate their lives to their work.

yes..I agree...it isn't about the cash at all...it's like...I am the CEO of _______and the look on some peoples face would be worth it

 

[Minor Axis]

Ok, look at it from another view. What sort of talented CEO would go work for $500k/year at one of those financial institutions if say, the current CEO was fired or left, when they have plenty of other offers to work for companies and make $5M a year?

I agree that some of the CEO's are complete screwups and don't deserve a penny more than what they've already been paid, but at the same time, you're not going to get a talented CEO to run a multinational corporation and try to dig it out of a hole for $500k a year, when they have an opportunity to dig another company out of a hole and potentially make much more than that at a different company. It's the simple concept of supply and demand, and you get what you pay for.

Face it - not many people want to be a CEO of a huge corporation like that. It consumes your life, will pretty much ensure that whatever family you have is ripped apart, and is generally a living hell. But people do it for the money. Crazy people, because money isn't everything there is to life, but a few people do it nonetheless. Out of those few, even fewer are actually knowledgeable and experienced enough to tackle it, and fewer than that have the decision making skills to not ruin the company. When those few are out on the market, and they have proven themselves by bringing a small startup to a national competitor, other companies take notice and will pay big money to get them onboard.

It's simple economics. When you put a cap on how much one company can pay for a CEO, whether you think they're only worth that much or not, the better talent will naturally run to whoever will pay them the most, which will NOT be the companies in the hole. Heck, if you want to save the financial companies, give them a few million extra to pay their CEO's over the next few years so they can actually attract some talent!

You are viewing these people as responsible and moral which appears to be a mistake. CEO's entered the ego zone along time ago. In the last 20 years many of them have been acting on it for self enrichment. In the zone you are deserve fabulous wealth because you achieved the position of CEO. Secondly you really expect the BOD to look out for the long term health of the company? They are at the feed trough collecting their $100k per year (or more) by supporting the decisions of the management. They are all in the zone. Five years of duty and they (CEOs) are rich. That is all they care about. So they need a reality check. Anyone who thinks they deserve to be independently wealthy because they are good CEOs really needs to examine their value system imo. I would not really have a problem with a $2 million retirement. But why does this person need a $25 million or more bonus? There is NO good reason other than greed which is not a good reason. I don't care how good of a job you did.

 

[teh_fuzz]

In my opinion, any CEO without integrity is second rate. Bottom line, my company isn't going bankrupt, we have cash on hand, and a solid line of credit.

Our execs. have had to leverage immediate profit with longevity in a volitle marketplace.

Not every CEO deserves accolades simply because he or she "made it". Just because they made it to the top of the heap, doesn't mean they are without accountability or that they even belong there.

When our CEO was selected, his original task was to get our company in shape to sell, with vision and tenacity, he convinced the board to trust him and he has placed our company in a position of trendsetter compared to companies our size. He is innovative, compassionate and ethical.

He is compensated handsomely for it, but he has also navigated tough waters and turned a sinking ship around. That is what an executive is supposed to do, not rob the safe when nobody is looking.

The total lack of foresight in the thinking that just because your there, your supposed to be there is why we are where we are. Regardless of who's in the White House, we are where we are because of greed and a total lack of fundamental integrity, to defend that type of business pracitce is insane.

At the end of the day, Wall St. came to the American taxpayer to save them, and now it's time for them to suffer some consequence.

Or should we just continue to give them money....And not hold them accountable...Again? I am not saying everyone, just the ones that asked for money....

I find it hard to give anyone creditbility who immediately after sinking an entire economy, says "WE NEED MONEY"

Then take a multi-million dollar bonus, cause...well they could have lost more....But they managed to damage control...

Bullshit

:homo:

 

[boombala]

Most of my adult life, I worked for large corporations and had acquaintenances with top officers and even some members of the boards (librarians get around). When I asked exactly what was their job, I was told -- "to delegate."

It's not the CEOs or the BODs who do the work (seemed to me that they spent most of their time jerking one another off over luncheons, golf outings and attending meetings in places like Hawaii with their wives and sometimes the entire family).

It's the workers that make the wheels go round and they don't get $25M bonuses and are lucky to receive a raise and/or benefits. The days of loyalty to the employees are over and as others have pointed out, it boils down to just plain greed on the part of the top officers.

And if profits are down, the CEOs call in consultants who they pay big bucks to let the workers know that they apparently are NOT giving 120% of their energy to the company. I threw the "Franklin Covey" rep. out of my office when he told me that I had to go to class to learn how to be more productive. I was devoting 12 hours a day to the firm.

There may be some wonderful CEOs turning companies around but for the most part, what we have seen in the last 10-20 years has been the officers and board members feeding off of the workers -- not seeming to care where the company was headed. They cooked the books and lied to the stockholders and looted the company with no concern for the wokers or whether they were taking the company down (ala WorldCom and Enron. and the more recent Wall street scandals, etc.). Now they want to feed off of not only the workers but the tax payers as well.

To hell with them!