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.
[Read Full Article]
Government, Politics and the Economy
The Recession: Signs of Improvement, No Jobs Yet
There are signs of improvement, sales are picking up, but according to a recent survey of small business owners, layoffs and poor credit are still a problem. CNNMoney.com
Business Groups to Obama: Limit Union Boss Pay
With President Obama intent on capping executive pay, business groups are now daring the President to impose pay caps on labor union bosses as well. WashingtonTimes.com
Management and Operations
[Read Full Article]
There is a variant on the Golden Rule that goes like this: He who has the gold, makes the rules. That seems to be the position of President Obama and his congressional allies. They are preparing legislation, part of their plans to spend the remainder of the $700 billion TARP monies, to cap executive compensation for companies that have taken taxpayer money. That one is hard to argue with since these companies now have a duty not only to their shareholders, but also to the people of the United States. On the other hand, there are other provisions aimed at companies that have not accepted bailout money. To quote Hamlet, “Aye, there is the rub.”
Take the Money, Accept the Rules
Imagine you give a nice, crisp $50 to a homeless man, thinking that by giving him so large a sum of money you are helping him to get back on his feet. Then, as you watch, your homeless man as he picks up a streetwalke... [Read Full Article]