Wednesday, February 4, 2009
According to CNN.com, President Obama is expected to make an announcement today concerning the salaries for the executives of large companies, especially those companies asking to be bailed out. The president wants salaries capped at $500,000. For the most part, this is a great idea. I say for the most part because I think that $500,000 a year is still high. I would be happy making $50,000 a year, so perhaps my view is kind of skewed? I'm sure that these executives are going to balk at this salary cap because they have gotten used to making millions a year; this will be a shock to their systems, but ask me if I care...go on...ask...NO I DON'T CARE! According to the CNN article, companies who really want to pay their exces more than $500,000 can only do so by paying the excess through stocks and only if STOCKHOLDERS approve of it. Also, the stocks cannot be made liquid until the company pays back the money it borrowed from the government. This means that they'll actual have to earn their salary...no stockholder in his or her right mind will approve of execs being paid more if the company is doing poorly and losing equity....great concept, right?