February 04, 2009

Salary cap

To be fair (God, I hate being fair) I honestly don't really know what to think about this:

President Barack Obama wants to impose a $500,000 pay cap on executives whose firms receive government financial rescue funds, a dramatic intervention into corporate governance in the midst of financial crisis.

The new restrictions, described by an administration official familiar with the new rules, are to be announced Wednesday morning at the White House. The steps set the stage for the administration's unveiling next week of a new framework for spending the money that remains in the $700 billion financial rescue fund.

"If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog," President Barack Obama said Tuesday.

Okay, on the one hand, when these executives go hat in hand to the feds for a bailout, it's somewhat satisfying to see them knocked down a peg.  And my instincts tell me that if their companies need that gubmint cheese so badly, well, maybe they should be tightening their personal belts—to the extent that only pulling down half a million can be called tightening one's belt, that is.

On the other hand, I'm more than a little uncomfortable with the government telling people how much money they're allowed to make.  And, really, is that even constitutional?  Sure, it's a cliche, but isn't that the very definition of a slippery slope?

What do you think?

Posted by: Sean M. at 03:50 AM | Comments (16) | Add Comment
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