Update: Cloak and Dagger alert! Executive pay limits can be waived!:
Those same rules, however, would be voluntary for most recipients of government aid. Companies could waive the restrictions by informing shareholders.
Get that? Voluntary, just inform shareholders you are handing over huge wads of cash to people who ran your company into the ground to the point you need taxpayer money...wala, not a problem.
This is a shocker. Obama to Limit Executive Pay at Companies Getting Aid.
President Barack Obama will announce today that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive significant federal assistance in the future, responding to a public outcry over Wall Street excess.
Any additional compensation will be in restricted stock that won’t vest until taxpayers have been paid back, according to an administration official, who requested anonymity. The rules will force greater transparency on the use of corporate jets, office renovations and holiday parties as well as golden parachutes offered to executives when they leave companies.
This is a nice touch actually because it turns executive stock options almost into a pre-ipo situation where the only way they can reap rewards is to actually do their jobs.
Unfortunately it is not retroactive and even more unfortunately the real issue, $1.8 trillion of US taxpayer dollars are at these banks when most believe they are still insolvent regardless....
But it assuredly is a start and a fantastic message to executives everywhere.