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The White House wants to rewrite a provision in the massive economic-stimulus plan that caps executive salaries and bonuses at institutions receiving federal bailout money -- posing the possibility of an early showdown between President Obama and leaders of his own party on Capitol Hill.
Although the president agreed that some limits in executive compensation were needed, the caps inserted into the $787 billion Democrat-crafted stimulus that Congress passed Friday are too restrictive and could be counterproductive, administration officials said on Sunday's political talk shows.
The administration worries that excessive limits on executive earning will put American companies at a competitive disadvantage, leading to "brain drain," where top financial talent leave for foreign banks. Caps also could cause failing banks to reject bailout money.
But one of Capitol Hill's most senior and powerful Democrats, House Financial Services Committee Chairman Barney Frank of Massachusetts, fired back at the administration Sunday, saying that rewriting the executive-compensation provision "is not an option."
"Mr. Gibbs may not like it, but it is going to be enforced," Mr. Frank said. "This is not, frankly, the Bush administration, where they're going to issue a signing statement and refuse to enforce it. They will enforce it."
Sen. Charles E. Schumer, New York Democrat and a key architect of the stimulus package, said the executive-compensation provision in the bill is "strong and tough" and effectively written.
"I disagree with the administration in this sense" that the provision should be amended, Mr. Schumer, vice chairman of the congressional Joint Economic Committee, said Sunday on ABC's "This Week." "I have no problem if companies want to get out of this [bailout] program and get out of the program quickly. That's their business and that's their right."
Sen. Christopher J. Dodd, Connecticut Democrat and Senate banking committee chairman, pushed for stricter executive-compensation limits than the administration wanted, arguing that they were needed to gain public support for funding for the ailing financial sector.
Under the administration's proposal, compensation restrictions would apply only to banks that receive "exceptional assistance" from the government, according to the Associated Press. Top executives could be paid no more than $500,000, with bonuses or other compensation coming as stock that could be claimed only after the federal money had been paid back.
Isn't it great that the goose-stepping era is past?
That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.Isn't it great that the goose-stepping era is past?
I'm sure the Republicans will enjoy this even more than you will.
That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.Isn't it great that the goose-stepping era is past?
I'm sure the Republicans will enjoy this even more than you will.
I didn't realize you were a member of Congress.That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.I'm sure the Republicans will enjoy this even more than you will.
No.. we NEVER disagreed with Bush...
Just because you WANT the myth to be true, does not make it true, ravi
That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.Isn't it great that the goose-stepping era is past?
I'm sure the Republicans will enjoy this even more than you will.
Are you one of these people that think the executive branch is all powerful?That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.I'm sure the Republicans will enjoy this even more than you will.
I'm happy to hear you've found one thing you can like about the Democrats. I wonder how well President Obama will like it. I know the Republicans are going to love it.
Perhaps you and your Republican friends can form a club to support these Congressional Democrats who are telling the President he is not really in charge since you all think it's such a great thing for them to do.
Are you one of these people that think the executive branch is all powerful?That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.
I'm happy to hear you've found one thing you can like about the Democrats. I wonder how well President Obama will like it. I know the Republicans are going to love it.
Perhaps you and your Republican friends can form a club to support these Congressional Democrats who are telling the President he is not really in charge since you all think it's such a great thing for them to do.
I'll do it for $450,000. If I don't turn the company around in a year they can fire me.The problem is as follows. If these companies receiving federal funds now choose to dump their CEO and bring in someone new, they will be restricted to limiting the new CEO's pay to the $500,000. This will severely limit who these companies may actually be able to bring in. I'm not saying there shouldn't be any limits, but $500,000 isn't going to cut it.
That's debateable. The one thing that I always like about Dems is that they don't fall into line and are apt to question their president.Isn't it great that the goose-stepping era is past?
I'm sure the Republicans will enjoy this even more than you will.
I'll do it for $450,000. If I don't turn the company around in a year they can fire me.
Look at what that Wells Fargo CEO got for a golden parachute. Corporate greed. Of course the free market sends jobs to mexico and china.The White House wants to rewrite a provision in the massive economic-stimulus plan that caps executive salaries and bonuses at institutions receiving federal bailout money -- posing the possibility of an early showdown between President Obama and leaders of his own party on Capitol Hill.
Although the president agreed that some limits in executive compensation were needed, the caps inserted into the $787 billion Democrat-crafted stimulus that Congress passed Friday are too restrictive and could be counterproductive, administration officials said on Sunday's political talk shows.
because
The administration worries that excessive limits on executive earning will put American companies at a competitive disadvantage, leading to "brain drain," where top financial talent leave for foreign banks. Caps also could cause failing banks to reject bailout money.
however
But one of Capitol Hill's most senior and powerful Democrats, House Financial Services Committee Chairman Barney Frank of Massachusetts, fired back at the administration Sunday, saying that rewriting the executive-compensation provision "is not an option."
"Mr. Gibbs may not like it, but it is going to be enforced," Mr. Frank said. "This is not, frankly, the Bush administration, where they're going to issue a signing statement and refuse to enforce it. They will enforce it."
and
Sen. Charles E. Schumer, New York Democrat and a key architect of the stimulus package, said the executive-compensation provision in the bill is "strong and tough" and effectively written.
"I disagree with the administration in this sense" that the provision should be amended, Mr. Schumer, vice chairman of the congressional Joint Economic Committee, said Sunday on ABC's "This Week." "I have no problem if companies want to get out of this [bailout] program and get out of the program quickly. That's their business and that's their right."
Sen. Christopher J. Dodd, Connecticut Democrat and Senate banking committee chairman, pushed for stricter executive-compensation limits than the administration wanted, arguing that they were needed to gain public support for funding for the ailing financial sector.
At issue:
Under the administration's proposal, compensation restrictions would apply only to banks that receive "exceptional assistance" from the government, according to the Associated Press. Top executives could be paid no more than $500,000, with bonuses or other compensation coming as stock that could be claimed only after the federal money had been paid back.
Rep. Peter T. King, New York Republican, on "This Week" said, "I look forward to the debate between Chuck Schumer and President Obama on this issue."
http://washingtontimes.com/news/2009/feb/16/obama-seeking-to-ease-limits-on-executive-salaries/
