Thursday, February 05, 2009


In response to President Obama's proposed cap of $500,000 salaries for executives of companies receiving tax-funded bailout moneys, according to the New York Times:

"That is pretty draconian — $500,000 is not a lot of money, (emphasis mine) particularly if there is no bonus,” said James F. Reda, founder and managing director of James F. Reda & Associates, a compensation consulting firm. “And you know these companies that are in trouble are not going to pay much of an annual dividend.”

Mr. Reda said only a handful of big companies pay chief executives and
other senior executives $500,000 or less in total compensation. He said such
limits will make it hard for the companies to recruit and keep executives, most
of whom could earn more money at other firms.

“It would be really tough to get people to staff” companies that are forced to impose these limits, he said.

“I don’t think this will work.”

Welcome to education...only divide your salary by 10, you poor baby. How will you ever manage to get by on only $500,000 per year of taxpayer money? I never complain about my salary, but I won't stand by and watch someone complain about making ten times my salary!

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