Limit Executive Pay?
On the front page of today's New York Times Edmund Andrews and Vikas Bajajwrite an insightful piece about the push-back in executive suites about limiting CEO pay to just above what we pay the President of the USA. According to the article, the Congressional Bail-Out packages will include stipulations that CEO's and upper management cannot receive more than $500,000 per year. James Reda, founder and director of James F. Reda and Associates, a compensation and consulting firm said "That is pretty draconian, $500,000 is not a lot of money, particularly if there is no bonus." What planet does he live on? I took 500,000 and divided it into 52 weekly payments and came up with a nice, every Friday check of $9,615.38. I do not consider that "not a lot of money!"
I particularly like the pay limitation clause that keeps executive pay of those failing institutions close to what we pay the most important person in the USA, if not the world. If a company is going to get my money, tax-payer generated money, then they must play by our rules; reasonable compensation.