The Associated Press story put it in stark, clear terms: Democrats on the House Financial Services Committee said Thursday the administration's efforts to hector the private sector into reining in executive pay might not go far enough.
Now, this is after naming a Special Master for Compensation to make sure that the pay and bonuses of executives for companies that needed to be bailed out is not over the top. As I mentioned in a previous article, this is a fine, populist move, but hardly an economically practical one unless the entire playing field is leveled by across-the-board wage controls. Now, as if fulfilling a prophecy, we have this: [Congressional] Democrats and administration officials agreed that companies across the private sector need to adjust compensation practices to avoid damaging the economy.
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Deborah Solomon at The Wall Street Journal reports that:
The Obama administration plans to appoint a "Special Master for Compensation" to ensure that companies receiving federal bailout funds are abiding by executive-pay guidelines, according to people familiar with the matter.
Talk about a wonderful example of having to play the King's tune when you take the King's shilling. This is the executive pay czar that the administration has been talking about ever since they seized upon the outrage over executive compensation and turned it into a populist cause. The czar will make sure that executive compensation for companies who have taken—or will take—falls within the guidelines developed by President Obama. These guidelines include limiting salary for top executives and requiring that additional pay be in the form of restricted stock, vesting only after the c... [Read Full Article]