Friday, February 06, 2009

New $500K limit on salaries in bailout companies

Obama has imposed a salary cap on bailed out corporations. Last year, the salary cap was not imposed because it would have detered companies from accepting TARP funds.

From the AP:
"This is America. We don't disparage wealth. We don't begrudge anybody for achieving success," Obama said. "But what gets people upset — and rightfully so — are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers."


Wouldn't it be cool if we applied this principal with every company that receives government assistance? Imagine if every major league athlete only made $500,000.

2 comments:

Phil Marx said...

"Last year, the salary cap was not imposed because it would have detered companies from accepting TARP funds."

Shouldn't we want to deter companies that waste their money on overpaid executives from applying for these funds?

Robert Enders said...

Ideally, both wasteful and frugal companies would not have to be to deterred since applying for these funds shouldn't be an option in the first place. I'm just speculating on whether any NFL quarterbacks would be willing to accept a 95% pay cut.