Is Air Going Back Into Execs' Golden Parachutes?
posted by: LiAnna D. 296 days ago
Today's exciting news that the $838 billion stimulus bill passed the Senate means that we're one step closer to having a plan of action for getting ourselves out of the current economic crisis. And one of the pieces of the plan I'm most excited about is the $500,000 cap on executive salaries.
Obama announced the idea in his remarks on February 4, 2009:
As part of the reforms we're announcing today, top executives at firms receiving extraordinary help from U.S. taxpayers will have their compensation capped at $500,000--a fraction of the salaries that have been reported recently. And if these executives receive any additional compensation, it will come in the form of stock that can't be paid up until taxpayers are paid back for their assistance.
Companies receiving federal aid are going to have to disclose publicly all the perks and luxuries bestowed upon senior executives, and provide an explanation to the taxpayers and to shareholders as to why these expenses are justified. And we're putting a stop to these kinds of massive severance packages we've all read about with disgust; we're taking the air out of golden parachutes.
Except I found out today that Congress might be putting that air right back into the executives' golden parachutes. Talking Points Memo's Elana Schor reports on a conversation she had with California Democrat Brad Sherman, a senior member of the House Financial Services committee:
Unfortunately, Sherman told me that he believes the executive compensation limits added to the Senate's stimulus are going to get removed during conference talks with the House. The reason: A new Congressional Budget Office estimate that the pay caps will cost the government $10.8 billion in lost tax revenue over the next 10 years.
Excuse me? We all know that these CEOs spend a chunk of that change hiring fancy accountants to take full advantage of loopholes in the tax law. Even politicians aren't immune to this, as can be witnessed by several high-profile cabinet nominees' recent tax scandals (we're looking at you, Tom Daschle and Tim Geithner).
What happened to holding Wall Street accountable? If the CEOs want our taxpayer money, they need to abide by the rules for once. Don't you agree? If so, I urge you to sign a petition to send a letter to your Congresspersons, urging them to keep corporate pay limits in the economic stimulus bill.
Let's make sure those parachutes are supporting the people who need it--middle-class Americans.
comments
I just want everyone here to know that I called everybody....senators, congressmen, and the White House....and told them all to send the $$ to ME!!
LET ME PAY OFF MY DEBT SO I CAN BUY ANOTHER HOUSE (only first time buyers are getting a credit %#)&%#&)
so I CAN BUY A CAR
so I CAN EXPAND MY BUSINESS
and YES, I SEE THE POSSIBILITY FOR ANOTHER BUSINESS IN MY TOWN...
but we have a president who was never in charge of any type of business other than advocating for those who ride coattails and drag us down...
that's his attitude, that's the only thing he sees...
he has no vision
he is not a leader
he's a downer
what a sorry mistake I made
What makes you think you made a mistake? did you vote for J McBush? now that would have been a mistake. You hang in there and you will do better under Obama than any republican.You did not make a mistake if yopu voted Democrat.if you did ,thank you.
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why is this inappropriate?
The innerstructure of our country is falling because of greed and lies. Too many have been allowed to do what ever they want with NO accountability, and just think about it...we put these people in office. I am to the point where I do not think I can trust ANY of them, regardless of party affiliation. So many just want to pad their own pockets, and they want to push their own programs. I have heard, and hope this is not true, that each US taxpayer will have to pay an extra 16,000 per year to pay for this new stimulus package! We already pay about 38 to 40 percent of our income in taxes. We already have a hard time! We live with the basics. Since my children are grown and on their own, we rarely go 'grocery shopping.' It's hit and miss. Look, I do not mind struggling a bit for the common good, but this will be ridiculous. This is just more government control crap! Each taxpaying citizen ought to get a portion of this money. THAT would stimulate the economy. I might even be able to go to the doctor and get my back taken care of. We have health insurance, but cannot pay the deductibles to even go to the doctor, so I don't go! Oh, and the answer is NOT Government controlled medicine, where the care you get is controlled by what age you are.
I am venting here, because I am just so sick of it ALL. If you here of any exec. that is made to be accountable...REALLY...let me know. If you here of a politician who has the people they serve and their interests at heart, let me know!
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Oh, and Curtis, with all respect to you...have you seen the gas prices lately??? They are going back up! I doubt this administration will do anything about it either!!!!!
I have called and writen hundreds of times to ask the congress and senate and the president to organize the world and get OPEC under control.But they make no effort to help.All they want to talk about is alternative fuels that won't work and will be more expensive.OPEC was brought under control years ago but our leaders lost that control, because we voted in the wrong people.
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If sub prime lending was the cause of the collapse...where did this begin??? It began in the second year of the FIRST CLINTON administration. NO PARTY can take this blame alone!! Guess what...we did not have the money to purchase a home- SO WE DID NOT!! WE had opportunities, but would not because we KNEW we could not. Responsibility has to start with EACH one of us, individually!!
You really need to return to reallity,you are way out there.Stop listening to republican lies and think on your own.Clinton never told anyone to buy anything they could not afford and he never told crooked republicans and bankers to lie on loan applications.
You are untruthful,
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why is this inappropriate?
Yes , you are right , except it should have 200 million strong And they should have brought some hemp along with them.
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why is this inappropriate?
Fine. If Congress wants to remove the cap because of lost revenue, then tax the excess compensation away. Then we can gain alot more than the $10 billion. I can't believe people who really disapprove of excess executive pay can't think more creatively. There's no excuse to let these obscene level of pay continue, even if they aren't being bailed out.
I think you have a slight flaw in your thinking.The excess money these Ceos are getting does not belong to the goverbnment,they belong to the share holders that the government toke the right to deal with these CEOS away from.Sinse the share holders no longer have any say in running the company the company has been robbing the share holders blind.Those golden paracutes are rightfully the share holders money.So why is the government entitled to it?They are not.The shareholders will put the money into the economy.
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We already believe that some politicians betray the people and should be treated as traitors of our country.
The business leaders, we believe are just common thieves.
We should repair this mess for the people, not the CEO’s.
We are demanding that the banks be nationalized.
We can live without thieves and traitors.
If the people descovered eight or ten congress men and senators hanging by their heals on the street lamp posts in the city ,I believe we would see a change for the better in a hurry.
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Everyone at every level of the economy should be feeling the effects of the last eight years of a free ride for far too many. I realize that executives can argue that cuts to their salary effects those that may work for them directly, but why can't they live on a paltry $500,000 a year and survive. There are far too many in this country that are living on $5,000 a year or less. We need to get real about what's important. Decent water and air, health care for everyone, decent food and shelter for all. Somehow I have trouble feeling sorry for an executive who can't get along on less than $500,000 a year.
"You go". They do not deserve that much nothing over $300,000.oo for anyone.That money is needed in the economy and those glutens won't put it in.As long as we let them rob our economy we will suffer.
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I think the problem is that no matter what laws the government passes, these guys will find a way around it. If they can't get compensation with big salaries, they'll figure out other ways to get compensated; tax loopholes, etc. This is a PR move by the government that probably won't work. I don't see why criminal charges aren't being pursued against some of these guys. Never mind, I guess I know: it's because too many of our Representatives and Senators were in on it!
Prosecution is definetly in order.They think if they prosecute one or two that will deter the others,but I do not believe that is justice or law and order.
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This is the stupidest thing I ever heard. This is the most idiotic rationalization I ever heard to cave in to pressure. Does Congress think we the American People are morons??? Let's cap the salaries and then see what happens.
Deffinently, only make the caps in the $300,000 dollar range, also include ceo's, movie stars, sports and government officials.As long as these few people keep taking all the money out of the economy ,we will never have an economy that works fairly.
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