Reactions to any White House initiative tend to stay within party lines. So it was surprising to see how Sen. John McCain, R-Ariz., regarded the Obama administration’s decision to restrict compensation for top executives at the biggest bailed-out banks. “I have no problem with greed being curtailed,” McCain said.
Apparently Sen. Pat Roberts (in photo), R-Kan., does: “It’s a bad precedent. You have government determining the pay of a company that may be in the business of trying to get the best employees they can to save the company. It’s very competitive out there. I’m not waving flags for people to get excessive pay or golden parachutes — what I object to is the government making that decision.”
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22 Comments
Roberts’ position is entirely sensible. If a struggling company sees someone out there with the skills to turn it around, but can’t hire the person because Obama is setting salaries, it may go under. The government has no business setting pay scales for private companies – it’s just another part of the current one-party government’s efforts to consolidate power by taking over as much as possible of the private sector.
Just how are companies bailed out by the taxpayers considered “private” enterprises?
Those companies came with their hats in their hands begging. They took the money and now want no involvement of those who provided the venture capital. Nonsense! You won’t find that kind of deal anywhere!
These “best employees they can to save the company,” wouldn’t be the same incompetents who were behind the company’s need to go to the public trough, would they? Again, nonsense! Obviously the “talent” that will be available isn’t talented enough to keep the business from begging for help to solve the failures they created.
“When buying and selling are controlled by legislation, the first things to be bought and sold are legislators.”
– P. J. O’Rourke
Pat Roberts protests stink of his need to protect those who have bought him! And nothing he says is best for the constituents whose money was used as venture capital for those failing businesses!
What will happen is that the high talent executives getting the big bonuses will flee to banks who didn’t get a government handout and settle in there.
I think it should be as discussed the other day, where executive bonuses are held in escrow and payed out in the long term either in multi-year bonuses (five years or more) or partially at retirement or separation from the company. (Ben contributed to the thread greatly).
Setting actual caps, I’m not so sure is wise or the business of any particular Czar or Congress, for that matter.
This could lead to political favoritism and be wrose than the current practices.
Yet, something needs to be done, hopefully encouraged by the lessons of recent events in the financial crisis.
I agree with Pat Roberts, government has no business into business. The dems and the Messiah are bunch of hpocrites anyway. We have all the goverment intrusion we can stand and it will only get worst. Of course the libs won’t admit that.
http://www.nypost.com/p/news/opinion/editorials/wall_street_wiggle_4Wh5HPoJkoIiKMTj17YB8O
These banks were bailed out with TARP funds — the action was taken by the bush administration to address the global financial crisis. Any venture capitalist should have spelled out the terms at the time the money was given. Since that wasn’t done, and since it is our money, it is also certainly our right to protect our investment.
Good article on the myths of Executive pay:
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/23/AR2009102302414.html
Mr. Roberts, why don’t you go ask ‘em real real nice to behave. And while yer at it, ask them to pretty please to never wreck the world’s economy again.
“Regular” offers –
“What will happen is that the high talent executives getting the big bonuses will flee to banks who didn’t get a government handout and settle in there.”
And the down-side…?
Regular
Posted October 25, 2009 at 8:52 am | Permalink
What will happen is that the high talent executives getting the big bonuses will flee to banks who didn’t get a government handout and settle in there.
_________________________
Reg, you’re probably right. But these people have a track record. Considering their past performance, looks like we can look forward to another financial melt-down when they get settled into their new positions.
If you screwed up in a corporation,as an employee on a fraction of the scale these big wigs did, you’d of been sent packing. There should have been a thorough house cleaning at all of the involved companies. The “we created the mess, so we understand it better” mentality should not have been allowed.
As far as firing incompetence goes, Roberts should’ve been looking for employment after the way he backed the worst president ever and covered up for him, and what has Roberts ever really accomplished in all of his terms?
Get business out of Government and get Government into business!
For more than 20 years, the focus in business has been on the short term gain and not the long term survival of the business. Witness the results.
Here’s the list of 55 congresscritters who oppose government health coverage, but are protected by Medicare –
Rep. Ralph M. Hall
Rep. Roscoe G. Bartlett
Rep. Sam Johnson
Rep. C.W. Bill Young
Rep. Howard Coble
Sen. Jim Bunning
Sen. Richard G. Lugar
Rep. Don Young
Sen. Charles E. Grassley
Sen. Robert F. Bennett
Rep. Vernon J. Ehlers
Sen. Orrin G. Hatch
Sen. Richard C. Shelby
Rep. Jerry Lewis
Sen. James M. Inhofe
Rep. Ron Paul
Rep. Henry E. Brown
Sen. Pat Roberts
Sen. George V. Voinovich
Sen. John McCain
Rep. Judy Biggert
Sen. Thad Cochran
Rep. Harold Rogers
Rep. Dan Burton
Rep. Howard P. “Buck” McKeon
Rep. Frank R. Wolf
Sen. Christopher S. Bond
Rep. Michael N. Castle
Rep. Joe Pitts
Rep. Tom Petri
Sen. Lamar Alexander
Rep. Doc Hastings
Rep. Cliff Stearns
Rep. Sue Myrick
Rep. John Carter
Sen. Mitch McConnell
Sen. Jon Kyl
Rep. Phil Gingrey
Rep. Nathan Deal
Rep. John Linder
Rep. Kay Granger
Rep. John L. Mica
Rep. Walter B. Jones
Sen. Jim Risch
Rep. Ed Whitfield
Rep. F. James Sensenbrenner
Rep. Virginia Foxx
Sen. Kay Bailey Hutchison
Rep. Ginny Brown-Waite
Sen. Saxby Chambliss
Sen. Michael B. Enzi
Rep. Elton Gallegly
Rep. Donald Manzullo
Rep. Peter T. King
Rep. Ander Crenshaw
SOCIALISTS!!!!
Uh Bob,
If a company is already on the ropes, how are they going to afford a high-priced overhyped executive who most likely ran his last company into bankruptcy and bailout?
The myth that there’s only one heroic knight in the realm to save your damsel in distress is a variation on the myths promoted by used car salesmen and patent medicine shows. If there really are such superknights in constantly polished armor riding a high-maintenence white steeds, you can count on them already having enough job security that they don’t need another fair maiden beset by dragons to rescue at whatever price your company has available to pay.
The simple solution would be for Firms that dont want government strings to pay back the tarp money
Guess the movers and shakers are going to all go to Japan where the CEO’s make about 10% of what they get paid here.
Of course, Roberts is going to support high salaries for those who put money in his pocket. Who cares if those salaries are coming from taxpayers’ pockets to begin with?
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TomPaine
Posted October 25, 2009 at 2:28 pm | Permalink
The simple solution would be for Firms that dont want government strings to pay back the tarp money
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Banks that issue credit cards and took TARP money should have to repay the funds with a 19.9% APR.
Banks that issue credit cards and took TARP money should have to repay the funds with a 19.9% APR.
=======================
And be sent tones of junk mail….
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ANTI
Posted October 26, 2009 at 1:51 pm | Permalink
And be sent tones of junk mail….
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Now THAT would be justice!
Ant,
My wife died 20 years ago and she still gets two or three pre-approved credit card offers a week, along with ads for life insurance policies.
Daniel,
“Banks that issue credit cards and took TARP money should have to repay the funds with a 19.9% APR.”
Raised to 29.9% if the minimum payment is received an hour late.