The Great Debate UK
from The Great Debate:
Executive pay caps: “stealth nationalization” or “political grandstanding”?
President Barack Obama set a $500,000 annual pay cap on Wednesday for executives at companies getting taxpayer bailouts as part of a wider process to clamp down on excessive corporate pay.
The new rules would require banks and other companies that get government funds in the future to abide by the new cap going forward, with any additional compensation being limited to restricted stock that does not vest until government funds are paid back.
The following are comments from the market on the new plan. Add your own view in the comments section.
BRADY DOUGAN, CREDIT SUISSE CEO
"The industry will need to find a balance. There have clearly been excesses. Clearly, a lot of performance issues in 2008. Clearly, it is natural that compensation should be down a lot.
from The Great Debate:
Is the executive pay bubble popping?
-- James Saft is a Reuters columnist. The opinions expressed are his own --
Signs are it won't just be the salaries of bankers coming under fire.
An unusual array of forces are combining to make it very likely that top tier pay may be structurally falling, rather than simply taking a cyclical dip during a downturn.
Take it for granted that pay in the financial sector will fall. A combination of increased government ownership and a shrinking businesses taking fewer risks with other people's money will see to that.
