NEW YORK (CNNMoney.com) - The Obama administration will soon order the nation's biggest bailed-out companies to drastically cut pay packages for their top executives, a senior administration official confirmed to CNN Wednesday.
Kenneth Feinberg, who was named the White House's pay czar in June, will demand that the seven largest bailout recipients lower the total compensation for their top 25 highest paid employees by 50%, on average, the official told CNN.
YES! YES! YES! And, this should be just the tip of the iceberg. When is regulation of the Wall Street/Banker yahoos going to kick in? When will compensation of top executives be reduced to a 20/1 ratio to average workers??? There are plenty of competent people waiting to replace these greedy, overpaid executives, they are not the best!!
And, when will rewarding executives for offshoring jobs stop? Some jobs will most likely need to stay offshore to reduce production costs, and, there is benefit to providing opportunitiy to other countries, but, many jobs have been sent offshore to make just the few at the top wealthy, while decimating our middle class.
Unbridled greed has contributed to this great recession...all these bailouts will have been useless without regulation NOW!
Yeah they need to first pay back their loans before indulging themselves.
Makes a mockery of getting government assistance while they make so much money and laugh in our face.
Definition for Capitalism:
an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, esp. as contrasted to cooperatively or state-owned means of wealth.
That is a gutsy move, but it is appropriate. My only stipulation would be that these companies be allowed to pull out of the stimulus deal if they chose. This is likely part of the deal already, however.
This should have happened from the start. This wont cut the bonuses, all that will happen is that the banks that were using the bailout money as loans will pay back now. This will get the money back, but ultimately it wont change the culture.
Why all the hub bub? The goverment gave / lent them money and in exchange they as investors are making some demands. All business's operate that way, investors have a say. Don't like capitalism? Buy out the goverments investment, it's that simple.
BTW, United Healths CEO has over $700 million dollars in unexercised stock options. Still don't think CEO's pay is out of line, get a clue!
Wonderful, who is going to want to work for these companies? These companies will never attract talented people and we will just have to keep bailing them out over and over.
Unbridled stupidity has allowed our government to build a 1.3 trillion dollar debt for 2009 alone. Allowing government to go unchecked is like the letting the foxes in the henhouse. Until the 3 branches of government can operate within a budget, leave private industry alone and let them fail or flourish based on their own merit. No more bailouts by the taxpayer period.
There they go again telling compaines what they should do. They should cut there pay but then so again the Gov hasnt done the greatest job eather but it always seems one of the first things they do every time they get in offer they propose for a pay increase
Start with all those clowns in Congress who are holding up the public option. That would be the best pay cut.
I like the fire, I like the drastic nature of the cuts, but I am concerned. Isn't it too easy for the corporations to adjust? For them, it's just a shell game. They will just move the money in some other way.
It kind of seems to be just for looks. Where is the real, substantive reform that effects the industry from top to bottom and works against the underlying destructive behaviors? Cuts to a few at the top, while conspicuous and flashy, won't effect the industry, they'll just frustrate the bookkeepers for a few weeks until they figure out a workaround. The super rich bankers will still figure out a way to get what they think they deserve (they think they deserve anything they want, no matter the cost to all who contribute the investment funds, which is wrong).
Another definition for Capitalism. GREED
As well the Obama Administration should! The bailed-out companies have shown they don't "get" it when it comes to fiscal responsibility. To use the taxpayers' dollars to lavish themselves with un-earned bonuses is a slap in the face of every hard-working American.
These companies and their execs should be on their freakin' KNEES thanking us we didn't let them go under!
Besides, it's standard business practice when loaning someone money to set the conditions of the loan.
I agree with this 100%. My neighbor's job is being cut from Wachovia-Wells Fargo next week, 1 week before their baby is due. They are a good hardworking couple. The banks need to pay back the loans and stop wasting our money.
Congress should be the first to be getting big pay cuts starting with the President on down. Actually, I have a better idea. Lets cut their entire pay in 2010 and 2012 by voting them out.
While they are at it they need to fire dodd and frank for the financial disaster they created with inept management of mae and mac.
But wait! I thought we were going to tax the hell out of these guys! If their compensation gets cut, there will be less to tax.
I say leave their pay as is and raise their taxes (and the corporation's taxes, too). It's time to knock a dent into the deficit by taxing the very people that created a need for a massive bailout. Let them have their millions, but let us get our share!
Capitalism is the best when regulated. Otherwise we would still have children in coal mines, unsafe work environments and worse. We do need limits on greed.
Not impressed. Why dont youand congress cut your own pay. At least these executives have kept the economy moving. Obama spends almost 2 trillion dollars since elected and now he things that paying these guys is a waste of money? Please spare me b-ditty, your communism is showing.
Did CNN confirm this, as the headline says, or did an administration official confirm it?
this is great news !
nobody in corporate should get bouns or pay for that matter
not untill they repay the taxpayer !