I figured it wouldn’t apply retroactively. I’d have liked that, but not a killer reason to beat Obama upside the head. But applying the pay cap in the future only to companies that get “extraordinary” federal bailout aid rather than everyday(?) bailout aid?
Big loophole.
Yeah, the Senate is going to look at tightening up both the retroactivity and tax deductibility of executive pay, which should be eliminated, not just restricted
Nonetheless, it’s another misstep by President Obama on the road to financial credibility with the American public.
Other loopholes there, too. Stock grants may be a way around the caps. Subjecting CEO pay in the future the nonbinding shareholder votes? Window dressing.
And, given that Larry Summers is already putting the bureaucratic squeeze on Paul Volcker, five bucks gives you a guess whose fingers are on that loophole, whether directly or via Summers’ little pocket weasel, Tim Geithner.
No comments:
Post a Comment