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Warren Panel to Treasury: Do More To Limit CEO Pay
As for the issue of limits on executive pay, which Congress insisted on including in the TARP, the Warren report says:
While some executives at some financial institutions have voluntarily reduced their compensation, there is no uniform program in place. Treasury has the power to set the "terms and conditions" of any purchase it makes using the TARP funds.
Treasury had opposed the limits from the start, arguing that they would discourage banks from participating in the program.
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Josh
Zachary
Gee, you make it sound like the market forces would not prevent these parasites from sucking more cash from their corporations by replacing them with someone who represents their best interests.
Oh wait! The market failed to prevent their getting to the top in the first place and has yet to remove anybody. Maybe they really are not as magical as the Republicans have come to believe.
January 9, 2009 3:40 PM | Reply | Permalink
"Treasury had opposed the limits (on executive salaries) from the start, arguing that they would discourage banks from participating in the program."
Good. If maintaining exorbitant executive salaries is the reason for banks and financial institutions not participating in the bailout, that is fine. In that case, they are not really in need of a bailout.
January 12, 2009 10:40 PM | Reply | Permalink