Geithner announces" Exec. Pay Reform", minus the reform. [View All]

[dixiegrrrrl]

"Geithner said the administration will support two new pieces of legislation:
one called "say on pay," in which shareholders would be allowed to take a nonbinding vote on executive compensation.
The other measure would require corporate compensation committee members to be independent from management.
But the administration has apparently backed off its earlier plan to put a hard $500,000 pay cap on executive compensation, after concluding that the provision would be too onerous for Wall Street firms attempting to compete with non-TARP banks that could offer unlimited pay packages.
"We are not capping pay," Geithner said.
"We are not setting forth precise prescriptions for how companies should set compensation, which can often be counterproductive. Instead, we will continue to work to develop standards that reward innovation and prudent risk taking, without creating misaligned incentives."
But the administration has apparently backed off its earlier plan to put a hard $500,000 pay cap on executive compensation, after concluding that the provision would be too onerous for Wall Street firms attempting to compete with non-TARP banks that could offer unlimited pay packages.

edited to add last (missing) paragraph.
and link ..http://www.truthout.org/061109J