One day I shall decipher the Professor's post and respond to it, but here is a bit more on the pre-Obama stimulus/bailout
Quote:
Among the new restrictions being considered is a $500,000 cap on salaries for executives at companies that receive a substantial amount of government aid, according to a person familiar with the matter.
Some within the Obama administration fear that curbing executive pay will discourage those companies from participating, delaying the financial-sector's recovery. Another faction in the administration believes that banks need to accept fairly punitive terms in exchange for getting government money.
Some banks have already turned down government cash because they worried about the increasing number of new conditions under consideration.
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I think the salary cap is both good and bad as it in some ways doesn't encourage people to work harder if they know they are going to hit a glass ceiling. While on the other hand since the gov't is paying these companies it makes sense to have some regulations.