Monday, February 16, 2009

Limitations on Executive Pay - for Bailed Out Companies

Recently in the news was talk of limiting executive compensation to a maximum of $500,000/year for executives of companies which receive federal bailout assistance. In response to this proposal was some mention of the "impossibility" of this for some executives living in Manhattan. The reported on costs such as: mortgage payments of $8,000/month with cooperative assessments of another $8,000/month for their residences which had an average purchase price of around $3,500,000. On top of these expenses were the costs of private school tuition for several children as well as various other significantly high expenses which were deemed necessary.

In reading this I wonder about those fellow citizens who have lost their jobs, and have minimal, if any, income coming in as well as the workers making $25,000, $50,000, or even $100,000/year who are working less hours and getting less pay, or losing their overtime pay. I think also of those living heavily on investments whose values may have dropped 30-35% or more now.

I heard no talk of how such executives might need to sell their co-op apartments and move to less expensive places to live, or send their children to public schools, or do many other things that "regular Americans" are needing to do as the economy crumbles.

It seems sad that some such people don't seem to "get it" related to the need to make significant sacrifices because of what has happened recently.


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