Obama announces cap on salaries for CEOs of companies recieving bailout money

Obama has anounced the salaries of executives of companies that have/will benefit from the goverment bailout will be capped at $500,000.

iht.com/articles/2009/02/05/america/05pay.php

However, according to the following article it doesn’t mean a thing

bloomberg.com/apps/news?pid=20601103&sid=azVLk.22AkLI&refer=us

Is he going to cap the salaries of all those who are the recipients of the pork too?

I’m sorry for using this language, but this is just DIVERSIONARY **** that is supposed to make us feel better about spending 1 trillion dollars . . . much of it for PORK BARREL spending . . . much of it will be for ONGOING programs that have NOTHING to do with a ‘bailout’ :mad:

I trust he’ll set the limit of public employee salaries to $500K too, like for university presidents.

I don’t know if you mean in the future or for other reasons, but in reference to this particular scenario they are quite clear this salary cap applies only to executives whos companies are benefiting from the goverment bailout.

Actually you, like most, have been DUPED, LIED TO, SCAMMED and otherwise completely DECEIVED. :frowning:

In any law there must be 3 components to be effective.[LIST]
*]**First **there must be the rule of the law (in this case that would be the declaration of a $500,000 salary cap)
*]Second there must be a penalty clause (like you go to jail or pay a fine if you violate the law, but there is NO PENALTY written into this law)
*]Third there must be an enforcement agency (like the IRS, the local police, the DEA, etc . . . but again there is no agency that has jurisdiction to either investigate or enforce this)[/LIST]I’m sorry but this whole thing is a sham. Just like President Obama, an empty suit. It looks good, but there is nothing of substance inside.

I honestly am not trying to be snide when I say this, but I completely missed your point. What exactly are your trying to say?

What I am saying, in simple English is that this law is a NON-law. It has no teeth. It cannot be enforced. There is no penalty. This is, in effect, not a law.

So if I ran one of these companies and I took “bailout” money, I could still make more than the proclaimed $500,000 pay cap and there is nothing that could be done about it.

This salary cap law is a scam on the American public, it was put into place to divert the attention away from the real outrage we should be expressing over the nearly 1 Trillion $ in borrowing we are doing from our children as the politicians have pushed long term spending and pork barrel spending into this project that they could not get into an annual budget. This so-called bailout is packed full of ongoing spending programs that have NOTHING to do with any sort of bailout.

Actually, this could be part of a contract (as opposed to law) to release the TARP funds to the banks. I know half or more of the money has already been released, but maybe the clause could be put in the next phase.

Re your earlier comment, Barney Frank said (probably as a trial balloon) that the tax code should be changed for all corporate taxes to make exec compensation over $500K not deductible for the corporation. Of course that’s just a tax penalty, not a violation of law.

You are right this is part of a scam, one of many scams. Ugh!

I don’t think this is a total scam and it certainly is an object lesson from the ‘bully pulpit’.

This was an executive order, not a law, that companies putting both front legs in the trough don’t need to be paying their top executives high salaries for failed performance. It would deny the loans in the case of highly compensated individuals who ran their firms into the ground. When you think about it, it makes a lot of sense.

As to enforceability, well, we have laws on the books against sex outside of marriage, too. Many times it is important to do something and not just shrug one’s shoulders.

So what you are saying is that it is, in fact, a public relations scam. It is totally ineffective. And it is nothing more than a diversion to make people feel good about penalizing these corporate executives but not actually accomplishing anything. In fact you are saying that Obama is factually telling the truth but still lying to the people because his words are hollow. That said, he then duped most of the public who believes that these executives will be held to the $500,000 standard.

No, I’m not saying that at all. Please don’t put words in my mouth.

Appearances count.

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OF COURSE YOU SAID THAT! You just used different words. The meaning was the same.

So what you are saying is that Obama is an empty suit. :thumbsup:

And the fact that you believe the appearances count is further proof that you agree his words are baseless and that he is pulling a huge scam on the American public. Thanks again for proving my points. :smiley:

Does anyone have a link to the text of the executive order that does this? Its not in the Federal Register as of Saturday afternoon.

So the government wants to put a cap on salaries and they have told Citi Bank they cannot put their name on a stadium. What is next? Is the federal government going to nationalize the banks so that we slowly slip into socialism?

Part of the reason the banks and auto companies are in this mess is due to federal regulation, so the Obama administration is going to pile on more rules to further inhibit how these companies do business.

Companies that were smart enough to not accept the federal money with all these strings attached like Deutsche Bank are already attempting to recruit executive talent from the very companies the government says it wants to help.

Well Barney Frank (Mass) slipped a bit and let that cat out of the bag already. He indicated that it might be necessary to cap all compensation of banking executives regardless of whether the bank takes bailout money or not!

I wonder if he will also cap the salaries of the liberal movie stars that support his campaign? Or maybe the sports figures who earn multi-millions annually? Wait, do you think that he will cap the pay of ex-Legislators who go on to take lobbyist jobs and make MILLION dollar salaries? :shrug:

:ehh: I can’t even get my head around this.

Yes, I was informed what I meant, despite my contrary statements.:rolleyes:

I am not an alarmist or conspiracy theorist, but if that occurs it will be the beginning of the end for how we live and work in this country. Frank is dangerous. O’Reilly had a tape of him stating there was nothing wrong with Fannie Mae and Freddie Mac but Frank could not admit that he said it. Such blatant dishonesty and disregard for the facts is scary. I shudder to think what he and others of his ilk will do next.

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