Obama Imposes Pay Cap on Executives By JIM KUHNHENN, AP posted: 11 MINUTES AGOcomments: 2509filed under: Political News, Bailout Vote, The Obama PresidencyPrintShareText SizeAAAWASHINGTON (Feb. 4) - President Barack Obama imposed a $500,000 pay cap on some senior executives whose firms receive government financial rescue money, a dramatic intervention into corporate governance in the midst of financial crisis. Standing with his Treasury Secretary Timothy Geithner, Obama said the United States doesn't disparage wealth nor does it begrudge those who succeed, but lavish bonuses for executives at companies seeking taxpayer dollars was unfair. Obama Imposes Pay Cap on Executives I realize there should be accountability, especially from these execs who have paid themselves ridiculous bonuses at a time when many are receiving funding through the bailout. Here is the problem I have; if some of these companies now feel it is time to go in a new direction and choose to remove some of these CEO's and other executive officers, how will they replace them with qualified candidates when they will be limited in what they can pay? I'm not saying they should be allowed to pay anything they want necessarily, but $500,000 for a top exec of these huge corporations is a very low salary in most cases. The truly qualified will seek employment elsewhere leaving these companies with their current executives or with new ones who will likely be less qualified.