The Obama administration is imposing some limits on executive compensation in companies that got bailed out by the American people to the tune of billions of dollars: Obama administration plans to slash pay of executives at 7 bailed-out companies Los Angeles Times 10/22/09.
This is good stewardship of public money, good business, good politics and good sense. Those are upsides. The downsides are that Republicans and financial plutocrats will whine. While the latter breaks my heart, I don't see how this is anything but exactly what Democrats should be doing.
Another reminder of why it makes no economic or business much less political sense for executives that do a bad job to get exhorbitant compensation subsidized by public money: Bank of America loses $2.24B as loan losses rise by Christina Rexrode Charlotte Observer 10/16/09.
Tags: obama administration, us economy
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