Who would work for $500,000 these days?
The former American International Group Inc chief executive believes that government steps to curb executive pay on Wall Street are a big mistake. The best managers and employees will move to private companies that are not receiving government money and therefore don’t face pay caps.
“You’re not going to get great talent for $500,000,” Greenberg said, referring to $500,000 pay caps that U.S. President Barack Obama placed on banks receiving new money from the Treasury’s Troubled Asset Relief Program.
If talent can’t be had for less than $500,000 a year, the United States is in trouble — our President makes just $400,000 a year.
But then again, given the mess that bank executives have gotten the system into, perhaps we could all do with a little less talent.
Image: Reuters stock photo