Wall Street Pay: Obama's Changes Set To Be Announced

nytimes.com:

The Obama administration plans to require banks and corporations that have received two rounds of federal bailouts to submit any major executive pay changes for approval by a new federal official who will monitor compensation, according to two government officials.

Read the whole story: nytimes.com

Comments

[munki]

IT SHOULD BE... a general rule of thumb...

SEC please come in!

[LynnW49]

I don't understand why THIS is not a good thing:
"Goldman Sachs, JPMorgan Chase and a handful of others have worked to rid themselves of their ties to the government in order to shed restrictions on pay that they say put them at a competitive disadvantage." If they can walk away from bailout money, fine. If rewarding high-flying risk takers who fail is what they want to do, let 'em. But they should never ever be given a taxpayer dime again, no matter how they fare. I'm no economist, but it seems to me that if they have to eat the consequences of their own irresponsibility, they might have to become competitive using legal, ethical, and fiscally responsible methods for a change.

I am a realist, however, and I don't see them changing their ways no matter what. I can't imagine that they won't find a way around the fine print. So it seems like it is past time that we let them hold the rest of the economy hostage with that too big to fail crap.

[NevaforLeadership]

Exactly.

I think they should all pay back the money now and be responsible for their own outcomes from now on.

[Faraja]

"Those principles will be permanent: when bailed-out companies return the government money, they will still have to follow those principles."

I smell Socialism!

[NevaforLeadership]

Public policy and laws don't make socialism.

Socialism is state ownership of all business and industry.

[petman2001]

Another cave-in from the Obama administration.

Face it, folks, we've been had. Obama has spoken loud and clear in the last five months across the board: he will NOT stand up to the status quo and fight for real change. He will make major concessions to the political elite rather than to rally the public into forcing Congress to do what it was voted in to do: represent the people.

"Whimpy, whimpy, whimpy!"
----garbage bad ad

[petman2001]

Sorry:

"Whimpy, whimpy, whimpy!"
---garbage BAG ad

[Mike Keough]

I can't even read this crap. They should be in jail and instead they are negotiating pay packages. Our congress has been bought, Obama's team is failing, and I am just depressed.

[Carolab]

Nice summation of where I'm at as well. It's getting to be too much to take, isn't it?

[NevaforLeadership]

Why? What laws did they break?

[PhilipTaylor]

BS about people leaving!

Apply the rules across the board to all corporations then!

These people have stolen their companies profits and in some cases ruined the companies or worse yet cause the Taxpayer to pay to backfill after their GREED!

They can not go to other countries as they pay much less! Pure BS argument to keep their GREED!

Overall rules make sense:

1980 WS Executives made 20 times average Worker
2008 WS Executives made 400 times average Worker
NOW Canada Executive made 20 times average Worker
NOW Britain Executives made 22 times average Worker
NOW Japan Executives made 11 times average Worker

300% Real Increase in Pay for Top 1% from 1980-2008!
20% Real Decrease in Pay for Other 99% from 1980-2008!

[NevaforLeadership]

I am a capitalist. I believe in free enterprise and self initiative.

But I believe that compensation models have touched on mad when senior executives take home multi-millions, while front-end customer service reps and sales people who deal with the consumers, who pay for those bloated executive compensation packages, take home non-living wages.

They will argue that the complexity of those low-end jobs fit the non-living wage. Then I say to them: "Elevate the jobs, increase the responsibility, mix in some challenges and incentives. Reduce the number of jobs and increase the expectations and tasks for the remaining jobs."

Of course executives should make more, but their current more is off the charts, specially when so many are incompetent and unethical (Slides of Executive Hall of Shame on this site last night).

[PhilipTaylor]

Let me guess! Just like in credit cards NO REAL LIMITS - 9 Months to implement!

1980 WS Executives made 20 times average Worker
2008 WS Executives made 400 times average Worker
NOW Canada Executive made 20 times average Worker
NOW Britain Executives made 22 times average Worker
NOW Japan Executives made 11 times average Worker

300% Increase in Pay for Top 1% from 1980-2008!
20% Decrease in Pay for Other 99% from 1980-2008!

Obama should set aside $3 Billion to investigate and if appropriate prosecute the financial crime in corporate America! These are ILL-GOTTEN DEEP POCKETS and it will take time and funds!

Washington-Wall Street Scam: Just FACTS!

$5 Billion Wall Street gave to Congress over Ten Year:

1. Average $7.5 Million to each Senator/4 years!
2. Average $1.86 Million to each House Member/4 years!

Top 400 Taxpayers Paid = $105 billion in adjusted gross income (Gross Much Larger)
Top 400 Taxes Paid = $18 billion = Tax Rate 17%
In 2002 Top 400 Tax Rate = 23%
In 1995 Top 400 Tax Rate = 30%

FED/Treasury gave $Trillions to WS and only $Billions to Main Street!
$284 to WS for Every $1 to Main Street!

They modified "Market-to-Market" Rule so Banks can L1E about value of $700 Trillion in Toxic Assets!

NOT "1" Executive (except mergers) Fired, Fined, Investigated, Prosecuted, or Convicted!

[davidwayneosedach]

You can be sure he'll get right on it when he gets back from vacation!

[jordan3189]

Just think if obama tried to set union pay..............liberals would come unglued.

[FrozenNorthObserver]

not to worry is past performance is any indicator O will make sure there are loopholes large enough to drive a limo full off cash though it. Ban ksters must not be denied.

[Carolab]

The executive branch has nothing to say about pay levels or compensation of any kind.

[ThePeoplesKey]

Last year Larry Ellison, CEO of Oracle raked in a cool $192,000,000.00 as America's most highly compensated executive. That's $24,489.80 per hour. $526,027.40 per day (Whether he worked or not), $3,692,307.69 per week, or $16,000,000.00 per month.

How does he manage on that paltry amount a month?

In addition, he paid no Social Security taxes on any amounts over the first $95,000.00 he earned. Meaning, he received an automatic tax benefit worth $28,785,750.00 just for being wealthy.

Oh, he'll still get the maximum amount of social security when he retires. This is part of what Bush meant when he said, "Anyone who pays taxes will get a tax cut under my plan." Generous estimates of what people like Larry actually pay in taxes hoovers around 7% of his gross compensation.

Seems fair doesn't it?

Making social security whole for everyone again:

I suggest "retroactively." Meaning, not from here forward, rather all the money that hasn't been paid by these people and their related predecessors since social security was enacted back in the 1930's.

Problem 2 solved

[DesertDogAlpha]

Social security is "us" paying for "our" retirements. Ellison will pay the max amount for his social security benefits that anyone will pay and he will get the max benefit. Everyone else paying that amount will get the same.

Most of Ellison's income relates to his efforts as an entrepreneur and his having huge amount so "his" capital at risk in the marketplace.

If you want the same, don't count on the government. Start a company, keep your capital employoed there (start early, don't buy a big car for a bass boat - us the money to start your company) and then, like Ellison, keep doubling down on your investment.

Capital is at risk and risk capital is king. Workers and paychecks are a very weak second.

Don't whine about the government not giving you enough. Arey you paying social security taxes on $95,000. If not, get busy so you can.

[Social Construct]

I find an inherent meanness in that. Not implying anything other than it just sounds more Hobbes than Locke. Law of the jungle and all that.

[ThePeoplesKey]

More BS from the Feds. Executive compensation needs to be taxed at 95% compensation received above the average amount of compensation required to be self insured. What does that mean? It means that there is an annual amount of income above which an individual is considered to be "self insured. It used to be around 3 million dollars annually, but for arguments sake lets say it's now 6 million.

That means that any individual citizen of the US would pay normal income taxes up to 6 million in personal income annually. Over 6 million in income would be taxed at 95%. This would allow for executives and others to still make an enviable income and encourage investment in their business and shareholders instead of their own wallets.

How much is 6 million dollars in compensation? 260 working days a year - 56 days for vacation & sick leave - 8 days for legal holidays = 196 working days a year. Using a 40 hour work week X 196 days = 7840 work hours per year. $6,000,000.00 / 7840 = $765.31 per hour worked. Or $16,438.36 per day whether you worked, were sick, on vacation, or enjoying a legal holiday with your family. Or $115,384.62 per week, or $500,000.00 per month gross before taxes.

Few if any human being's efforts are worth 500K per month IMHO. So that's a pretty generous amount by any measure. If you can't survive on that, there's something seriously wrong with you.

Problem solved.

[DesertDogAlpha]

Golly, that's the work of genius. I think you could ensure that no one would want to put any capital at risk or work a day longer than needed to get $6 million per year. Of course, that risk capital does tend to create jobs, and those jobs might not be generated, but what the heck. Let's just get even with those who have more than us - then we'll all suffer and you can feel better about it.

[tazmodious]

I'd work 80 hour weeks for a million a year, even 500K!

Most people would do the same. It's only those who are completely self absorbed and have been benefitting greatly from government welfare the for top 10% that would think otherwise.

The entitled people are replaceable and should be replaced by folks who will do better for less. It's what we've been subject to by the greedy. Our economy would improve vastly and quickly.

[Mike Keough]

That risk capitol you speak about is profit. Profit or inheritance. The jobs you speak of are the result of "us", not them. The fact that they need to maximize their lifestyle disproportionally to what they" 'do" means nothing to you. What do you do for a living that you justify this kind of excess? The further we get away from production, the more meaning Money acquires. The Lenders Christ spoke about have taken over. Twenty years ago the bulk of our GDP was based upon our building things. Now it's all about money making money and that is not just wrong it could lead to our destruction. Over the course of my life I have "built" about $500 MM worth of buildings. I cannot get a job. People and corporations who have all of the money I earned for them are sitting on it. They won't invest. They don't want to pay taxes and hire lawyers to create offshore accounts so they won't have to. They are rich and have their own set of rules, and you defend them. They are destroying our Country and you defend them. YOu confuse and amaze me.

[Diogenis]

If the pages here jump any more that they do we will not be able to click where we want to.

[TJCole]

We should have Nationalized these corrupt banks months ago....!

Until we do, we are only throwing good money after bad...!

[SaveTheMarshMouse]

The answer to curbing the obscene pay of the CEO is very simple.
American corporations have made millions of dollars by outsourcing the high-skill jobs of thier firms to India, China, and South America. It is now time to outsource the CEO jobs.
They will work for far less than the American CEO (hundreds times less I'll bet) and they don't need to be paid benefits It's a win for the shareholders and we will get more efficiently run corporations!!

[DesertDogAlpha]

Could it be that a lot fo the skills needed to do those high-skill jobs are in India? And that those skilled workers offer a better value proposition? Executive jobs get outsourced all the time. This is why and Indian lady is CEO of Pepsi.

[munki]

Our nation's corporate America CEOs in general had compensation contest at the BEST interest of themselves and NOT