Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in the government’s financial rescue, the Obama administration will order the companies that received the most aid to deeply slash the compensation to their highest paid executives, an official involved in the decision said on Wednesday.Most of these executives are pretty well off, and with these changes coming down, my guess is a lot of them will flip the bird to Obama and leave. These companies, already in big trouble, will lose some of their top talent and will have a very difficult time replacing them with anybody worth the money. This will likely just accelerate the demise of those firms.
Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. Their total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 percent.
Wednesday, October 21, 2009
They'll Be Some Top Openings in Some Really Big Companies
They might as well call this the "Let's Chase Out all the Talent" program:
Subscribe to:
Post Comments (Atom)
Posts
3 comments:
What else can be expected when one suckles at the public teat?
"The demise of those firms" may be what Obama wants. By undermining the private sector there would be more emphasis on public sector mandates.
I read in the last 30 minutes that Gov. Patterson (D, NY) is complaining these pay cuts will give him a Billion Buck Budget Black Hole.
The Won's just so goooood to his friends.
Post a Comment