The wrong way on executive pay

[Jaundice James]

Executive pay has lately been a source of outrage of both the Left and Right of American politics – not to mention the millions of people who have suffered...

I’m glad steps are being taken to discourage such risky behavior, but I have serious misgivings on how it’s being done.

Now, no doubt, this sounds like a good plan when you know that it’s the Obama administration that will be doing the approving or vetoing, correct? But what happens in 3 or 7 years when there is no more Obama administration? What if the next administration or the one after that is a Republican administration? What then?


http://jaundicejames.com/2009/10/23/the-wrong-way-on-executive-pay/

[CaliforniaPeggy]

1. Is the statute that authorizes the oversight ongoing?

I thought it was just for the institutions that had not yet paid back the TARP money.

And I do believe that this oversight is a very good damn thing, and should have been done a long time ago. Of course, the bushbots would never do it.

:shrug:

[JuniperLea]

2. It is just for TARP recipients... however...

Everyone looks at "comparable salaries" within their industry to set salary. This could (and should!) have further reaching effects.

[Warpy]

3. Executive pay should be tied to worker pay

with a provision that contract workers also figure into the equation to keep executives from having everybody below executive level be an independent contractor in order to skew the numbers upwards.

That would give executives who can only make 40 times what the lowest paid workers make an incentive to give raises. It's the only way the executives can get one.

The progressive tax system discouraged naked greed at all levels. It's really the most efficient way to rein in greedy executives who are basically looting the company with (barely) legalized embezzlement.

Something has to be done. Stockholders are fed up, too.