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Obama to Limit Executive Pay at Companies Getting Aid (Update1)

Discussion in 'Economics and Financials' started by unluckyluciano, Feb 4, 2009.

  1. unluckyluciano

    unluckyluciano For My Hero JetsSuck

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    link


    :hi5:
     
    Ludacris and SICK like this.
  2. SICK

    SICK Lounge Moderator

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    awesome! well done barack!
     
  3. jdang307

    jdang307 Season Ticket Holder Club Member

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    I do agree with Barack on this. First, I don't think they should be getting any money, second, even if they are, they should cut out all but the bare necessities.

    But could the companies have done this without Barack making the rule? These top execs have employment contracts and very good lawyers. I'm not sure they could have reduced what they were going to give their execs until the president stepped in.
     
  4. Section126

    Section126 We are better than you. Luxury Box

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    Could be unconstitutional.

    Especially since most of these bailouts operate as loans.

    When re-organization occurs in the real world, this does in fact happen very often. Imposed by judges though after a hearing.

    I am not sure that the POTUS making a blanket rule is legal.
     
    UCF FINatic likes this.
  5. Ludacris

    Ludacris Season Ticket Holder Club Member

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    Great move by Obama. I hope those executives don't find a loop hole and get around it through another avenue. They are real sneaky that way.
     
  6. Coral Reefer

    Coral Reefer Premium Member

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    Yep and they will probably pay their team of lawyers retained to find that loophole out of the stimulus funds. :lol:
     
  7. jdang307

    jdang307 Season Ticket Holder Club Member

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    They always find a loophole. Always. It's actually Congress' fault that executive pay skyrocketed like it did. Everytime they try to legislate exec comp, they either set a limit higher than it currently is (thereby causing the comp to rise to that level) or cause comp to become creative. The stock options craze you see is a direct result of Congress placing limits on exec pay.

    Government as a whole is not smart nor agile. Those working for profit are. And then everyone copies the smartest ones.
     
  8. UCF FINatic

    UCF FINatic The Miami Dolphins select

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    Very, Very true. Also $500,000 for a CEO or Big-Wig is nothing. That number should be a lot higher... at the very least $750,000.

    I think the gov't just shouldn't provide bail-outs rather than doing this. Its like solving a problem that wouldn't have been a problem if the gov't didn't give them a bail-out.

    If the company doesn't get a bail-out they will cut those costs on their own. Its called BUSINESS for a reason. How long until Obama "regulates" or tells me how much I can make.

    My friends our country is slowly becoming socialist...
     
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  9. UCF FINatic

    UCF FINatic The Miami Dolphins select

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    And before someone says it, I am not just blaming the Democrats or Obama. I am talking about over government as a whole...

    The government wants more power and is taking it from us. In scarey/dangerous times countries/people are willing to give up a lot of freedoms and rights for more safety. Look at the Patriot Act, etc.

    "A country that gives up some of its freedoms for safety, is neither free nor safe."
     
  10. Fin D

    Fin D Sigh

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    Would there be a contract involved? If so, couldn't there be almost any stipulation they want in the contract?
     
  11. Fin D

    Fin D Sigh

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    He's not forcing anything. He's simply saying if you need help, we'll help you, but here are the conditions.

    Cutting costs by the way means cutting jobs. How will that improve the economy?
     
  12. Phinz420

    Phinz420 New Member

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    I'm not totally against or for it- but it's not going to affect many of the banks receiving money right now. Apparently the loop hole is that this is only going to limit executives of companies who need "exceptional assistance in the future".
    http://www.bloomberg.com/apps/news?pid=20601070&sid=azVLk.22AkLI&refer=home
     
  13. jdang307

    jdang307 Season Ticket Holder Club Member

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    There are better conditions than a blanked $500k to executives though. You have to understand these guys make tens of millions. Now, that's a problem in and of itself, but sometimes these guys do earn it. Now, the bank who is in this mess should get rid of their CEO, after all they need this extraordinary help. But look for a flight of talent from banks that take the money to those that haven't. And the banks that take the money does not need a talent flight.

    EDIT: I might add, that I'm ok with them limiting compensation, they should NOT be making money hand over fist in such an environment. But $500k really is peanuts when you're talking about these companies. My boss makes over $500k a year (bastid) in a company with only 6 employees. They shouldn't be making tens of millions, but they have to be somewhat competitive.
     

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