Impose Salary Limits
I am annoyed by the furor over proposed salary limitations and other restrictions to be placed on top executives of Bank of America and others that are receiving vast amounts of money in the government's Troubled Assets Relief Program (TARP).
An article in Yahoo News online (Feb. 4) stated, "Compensation experts in the private sector ... argue that it could set a precedent for government regulation that undermines performance-based pay." Those guys that lead companies needing billions in bailout money have earned their multi-million-dollar salaries and bonuses! Bang-up job, guys.
The $500,000 annual salary limit was called "draconian." It's $100,000 a year more than the president makes!
Some CEOs argued that the government had no business forcing regulations and should not interfere with free enterprise. I'm waiting to see the headline that says these guys turned down bailout money as a matter of principle.
As for the complaints regarding the regulations and close audits while receiving billions of dollars of federal aid, dig this: In order to get food stamps, one can make no more than a barely subsistence level of salary to be eligible, and every recipient has to provide thorough documentation of every penny coming into the household and the assets therein to be updated every three months.
Stamp recipients could be turned down for benefits for owning a home, even if making the mortgage payment leaves only enough money for gas or for having a life insurance policy, even though the person would no longer be in need of food.
I think in order for any company to be eligible for TARP, CEOs and executives should be required to do many hours of community service as well as recite the Pledge of Allegiance three times a day, loudly.
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