Cash in while you can, CEOs: executive pay reform is coming…

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Oct. 6, 2009

While executives at AIG and other bailed-out financial firms continued to receive lavish bonuses, President Obama and members of Congress promised that action to cap executive pay was coming. That day appears near: details were leaked today on the plan soon to be put forward by the Obama “pay czar” that would limit cash compensation and move the rest into stock options, which couldn’t be touched for at least five years. Can the plan really control executive pay, and is it too much government intrusion?

Also on this episode

Guests:

Deborah Solomon, reporter for the Wall St. Journal who broke the story this morning on the executive compensation plan

William Black, associate professor of economics & law at the University of Missouri, Kansas City; former chief counsel at the Office of Thrift Supervision

J.W. Verret, assistant professor of law at George Mason University; senior scholar at the Mercatus Center Working Group on Financial Markets

Irene
4 months ago

It is about time, how is $53 million dollars to justify for BOA CEO retirement? 53 millions burgers for the rest of his life or a 53 million dollar plan for his pleasure?

christopher smith
4 months ago

How come the gov't has to solve this? How come boards of directors adn SHAREHOLDERS are not speaking up about this?

Katy
4 months ago

When the Churches don't teach ethics in the year 2009, someone has to! I know a very "Christian" family whose son is a Vice President of a national company. He willingly accepts flights to Hawaii for "conferences," rides in private jets, and accepts multiple benefits. Trying to reconcile greed with religions is something these people aren't able to do. It is a privilege to be blessed with the intelligence to run a company. Of course, they should receive more for the responsibility that is on their shoulders. But 400 times, 800 times the lowest paid worker???? That, in a nutshell, is obscenity

jp
4 months ago

Prof. William Black is one of the few who are speaking the truth about EM08:
http://watertreading.blogspot.com/search/label/William%20Black

it's funny how arguments against regulation never account for how opponents with deep pockets, armies of lobbyists/lawyers/accountants never talk about how regulations are skirted and overthrown. the problem is multi-faceted;

1. ENFORCEMENT of regulations. the sec knew about madoff, several times over, WAY in advance of the final disclosure.
2. SUNSHINE: if mass media would make top line stories out of things like jack abramoff or the pernicious structure of sub-prime mortgages and STICK WITH IT then the public can't blame media for not being on it.
3. Get rid of re-districting, which leads to incumbency.

dg
4 months ago

Could regulatoin re: shareholder information be effective? Il.e. most shareholders do not pay much attention to anything other than how their portfolio is doing. Maybe some in-your-face data about exec. compensation should be required. I.e. if pay (total comp!) is X% above some market range maximum, it's got to be reported to shareholders.

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