“Curbing Executive Pay”
NY Times reported on Wednesday the executive pay limits
President Obama is trying to hold the financial industry accountable to taxpayers while aiming to change an entrenched corporate culture that endorses outsize bonuses and perks that often bear little relationship to corporate performance
President Obama is on his way to altering 'Corporate Culture' in America; changing the face of culture across the corporate board will mean more structured salaries. The brightest and the best who failed at performance are facing 2009 with a reality check "shape up or shape out"
The new rules would set a $500,000 cap on cash compensation for the most senior executives, curtail severance pay when top executives left a company, restrict cashing in on stock incentives until government assistance was repaid and prod corporate boards to closely scrutinize luxury perquisites like private jets and country club memberships.
New rules will mean Shareholders have more say about restricting stock incentives and bonuses capping. Obama commented on Wednesday
We don’t disparage wealth. We don’t begrudge anybody for achieving success. And we believe that success should be rewarded. But what gets people upset — and rightfully so — are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers
Hopefully this is sending out the right message not only in the USA but in UK, Europe and everywhere else; people want to be the CEO but very few want to “Do” CEO moving in this direction is politically necessary.
Source: NY Times Read More......