White House to Curb Executive Pay at Bailed-Out Banks

Thursday, October 22, 2009

According to Bloomberg News, Wall Street bonuses are on track to increase by 40 percent this year. But as our partner The New York Times reports, the Obama administration will order the companies that received the most aid from the bailout to slash the pay of their top earners. According to officials who spoke to the paper, seven companies will have to cut the paychecks of the 25 highest-paid executives by an average of about 90 percent from last year. More companies will have to curb special perks like country club memberships and private planes. We look at how much the government should be involved in setting private salaries with New York Times reporter Stephen Labaton; Paul Hodgson, senior researcher at The Corporate Library; and Steve Kaplan, professor of finance at the University of Chicago's School of Business.

Guests:

Paul Hodgson, Steve Kaplan and Stephen Labaton

Contributors:

David J Fazekas

Comments [5]

Al

Let's cut these executives loose (fire them) and let's see if those overpaid and overperked executives find new jobs as quickly as suggested by your guest this morning. There are plenty of qualified people to take their place, they should really have an opportunity to get a taste of the competitve spirit of the market place.

Oct. 22 2009 05:30 PM
Del

I think it can be better said the Executive office of our Government is going to try and limit money going to those who are ultimately responsible for driving their company into the ground with unethical financial practices. not everyone in the government is down for this. I am sure there are many politicians who are close friends with these top 25. I know its a free market, but those top 25 people needed tax payer money, or they would have to go find another job and take a huge loss on their stocks they have pooled between/in companies. In turn they (the execs) are accountable to the US people.

Oct. 22 2009 01:13 PM
SJLaw

I also feel the story was misleading. It was just a few weeks ago people were outraged about the government NOT regulating the banks pay. Now we're turning it into a question of should the government regulate anyone's pay. Celeste was right about the double standard between GM/Chrysler and Wall Street. The government is damned if they do and damned if they don't.

The story should be about the government's awareness of people's outrage and the struggle in Washington against giant corporations and their well-funded lobbyist. Not to mention the moral question of companies unfairly benefiting on the backs of taxpayers.

Oct. 22 2009 10:38 AM
Patricia

I agree with Daniel, stop being misleading. The government isn't taking about whether you or I make too much money, it's wanting to curb the for those companies that took bailout money. And I completely agree. These companies got us into this mess and their top executives shouldn't be rewarded, they're lucky they still have a job.

Oct. 22 2009 09:07 AM
Daniel

I'm listening to your show and your question is extremely misleading. The government is not interested in telling companies what to pay employees. It's interested in curbing pay ONLY to companies that have taken government bailout money. There's nothing wrong with that. Stop misleading the public!

Daniel

Oct. 22 2009 08:37 AM

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