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Will Obama Regulate Executive Pay?

Drudge has a linkless red headline that The New York Times will report tomorrow that Obama is going full steam into regulating executive pay:

Obama will call for increased oversight of 'executive pay at all banks, Wall Street firms and possibly other companies' as part of sweeping plan to 'overhaul financial regulation', NY TIMES reporting Sunday, newsroom sources tell DRUDGE... Developing...

This may very well apply only to those banks, Wall Street Firms and other companies that have taken government money, but we'll have to see once the Times piece is published tomorrow.

Update: The Times has published the article on line, and Obama is going to vastly regulate executive pay in financial institutions:

The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

The outlines of the plan are expected to be unveiled this week in preparation for President Obama's first foreign summit meeting in early April.

Increasing oversight of executive pay has been under consideration for some time, but the decision was made in recent days as public fury over bonuses has spilled into the regulatory effort.

The officials said that the administration was still debating the details of its plan, including how broadly it should be applied and how far it could range beyond simple reporting requirements. Depending on the outcome of the discussions, the administration could seek to put the changes into effect through regulations rather than through legislation.

One proposal could impose greater requirements on the boards of companies to tie executive compensation more closely to corporate performance and to take other steps to assure that outsize bonuses are not paid before meeting financial goals.

The new rules will cover all financial institutions, including those not now covered by any pay rules because they are not receiving federal bailout money. Officials say the rules could also be applied more broadly to publicly traded companies, which already report about some executive pay practices to the Securities and Exchange Commission. Last month, as part of the stimulus package, Congress barred top executives at large banks getting rescue money from receiving bonuses exceeding one-third of their annual pay.


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Comments (26)

In other news, Obama also c... (Below threshold)
Brett:

In other news, Obama also commented "Wouldn't it be better if the workers controlled the means of production?"


From each according to h... (Below threshold)

From each according to his ability, to each according to his need!!
Workers of the world...UNITE!!

With the East Coast lunatics touring AIG employee homes, and the West Coast lunatics vandalizing Marine Corps recruiting centers, how long before they start erecting guillotines???

Of course, it's tougher to drag people out of their homes and cut their heads off if the intended victims have exercised their 2nd Amendment rights!

jus' sayin'

There's always the slippery... (Below threshold)

There's always the slippery slope argument, but if the cap only applies to institutions that are being bailed out by the tax payers I don't have much problem with it.

NYT's just put up th... (Below threshold)
rodney dill: "...if the ... (Below threshold)

rodney dill: "...if the cap only applies to institutions that are being bailed out by the tax payers I don't have much problem with it."

(a) the article says: "oversight of 'executive pay at all banks, Wall Street firms and possibly other companies'" Sounds like a pretty wide cast net, eh?

BUT
(b) what is the definition of "bailed out"? Today it is those receiving TARP money. But the definition of "bailed out" can very easily and quickly be changed to: "Those the Government regulates"... i.e. damn near EVERYTHING!

I didn't even like "Back in the USSR" when the Beatles sang it...i like it less when the trio of Obama/Reid/Pelosi sing it!

I suspect that we are about... (Below threshold)
bobdog:

I suspect that we are about to see the phrase "malignant megalomaniac" bandied about in the world media fairly soon.

Obama wants complete and direct control of the next Census, today he announce that he is taking direct control of Cybersecurity away from Homeland Security, and now he wants control over executive compensation in private industry.

$9.75 trillion and counting.

This guy needs to be resisted before he destroys the constitution, the country, and the world economy. I don't like to trot out Hitler comparisons, but Jeezus...

In the past our liberal lea... (Below threshold)
geminichuck:

In the past our liberal leaders were known to try to solve any problem simply by throwing more money at it. BHO certainly does that - but he has taken liberal politics to a new level: federal government control will be the answer to any national problem going forward.

If this program passes, Oba... (Below threshold)
GarandFan:

If this program passes, Obama might as well start issuing Mao jackets to go along with it. Comrades.

Part of the languag... (Below threshold)
irongrampa:


Part of the language in this proposed bill says that any bank AND affiliates


Justrand, as I understand it, any bank owned or affiliated with the TARP receivers will also be affected.

And next will come salaries and bonuses in ANY other business they can think of.

Sorry for the mutilated pos... (Below threshold)
irongrampa:

Sorry for the mutilated post.

irongrampa: "...any bank... (Below threshold)

irongrampa: "...any bank owned or affiliated with the TARP receivers will also be affected"

The next and simplest step:
Any company that receives a LOAN from a TARP recipient bank must ALSO adhere to the guidelines!

and so on...

What do they call a system where the State controls compensation??? Just can't seem to recall...but it ends in "ISM"

the country has been ruined... (Below threshold)
dr.j:

the country has been ruined in just 60 days. More debt than all combined presidents, more proposed "solutions" involving the govt usurping private sector, more narcissism. He smiles on Leno because he is so taken with himself. Any opportunity to get attention. Chrisake he he filled out his NCAA brackets on TV. Next is the 24 hour O channel. This is all about a guy who has no friends because he has himself.

I've hastened to say this b... (Below threshold)
marc:

I've hastened to say this but... barack hussein obama is a blithering idiot.

Keep in mind obama's and the tax cheats plan to "save the banking industry" is predicated on private companies entering the market and buying up the so-called toxic assets.

Yeah... FAT CHANCE.

Who knew presidential high-priced loafers, brogues and boots came adorned with a red bullseye target to assist shooting ones own foot.

What else is new - he alrea... (Below threshold)

What else is new - he already compared bankers to suicide bombers.

Hmm. Let's see, We raise Mi... (Below threshold)
Burt:

Hmm. Let's see, We raise Minimum Wage and we lower Maximum wage. To be fair, when these two numbers meet, they should all be taxed at 90%

Can they keep the money if ... (Below threshold)
RScott:

Can they keep the money if they promise to wear one of those Che tee-shirts?

You're missing the big one:... (Below threshold)
John S:

You're missing the big one: just what the hell constitutes "executive pay"? Anyone on a salary? Eventually, to pass constitutional muster, the law will be expanded to place the 90% income tax on every household making more than $250,000 a year.

Unfortunately, this is a government that can no longer sell enough treasuries to cover its $10 trillion spending spree and is now printing money to buy its own debt. When that backfires into 1,000 percent inflation, it won't be long until every 16-year-old grocery bagger will make $750,000 a year and pay 90% of it in taxes.

The 2010 midterm elections are coming. We can stop this. Yes we can.

Next is the 24 hou... (Below threshold)
Stan25:
Next is the 24 hour O channel.

Is that the Orgasim Channel? That is certainly the way some on the left are doing now.

Justrand at #11: the word y... (Below threshold)
wolfwalker:

Justrand at #11: the word you're looking for is fascism. Comes from Italy circa 1930 or so. A variant of socialism in which private enterprise existed, but only at the sufferance of the national government, and only as much as the national government permitted. Prohibitively high taxes and extensive government-funded social programs were other hallmarks of the Fascists' domestic policy.

Thus quoth the sage Pogo: "We has met the enemy, and he is us."

A couple of books to let yo... (Below threshold)
Arthur:

A couple of books to let you know what's going on now
"Liberal Fascism" by Goldberg
"The Road to Serfdom" by Hayek

and one to let you know where we're headed.

"Atlas Shrugged".

If Obama can tell me by wha... (Below threshold)
Trump:

If Obama can tell me by what f**king right he gets to do this, I'll drop all objections to this.

Never let a crisis go to wa... (Below threshold)
Bob:

Never let a crisis go to waste. Is this a prelude to federal control of ALL wages and salaries? Ayn Rand had it exactly right: The more we impose government controls that don't work, the more the statists/collectivists will call for MORE government controls. This is the same mind set that is convinced that the reason the New Deal didn't get us out of the Depression was that FDR didn't think BIG enough. "Insanity: doing the same thing over and over again and expecting different results." Albert Einstein.

I read something interestin... (Below threshold)
retired military:

I read something interesting on anohter site.

Since people making above $250k are paying like 80% of the taxes what happens when they stop making above $250k? Tax revenues drop like a rock. Bigger deficits, etc.

Talk about biting the hand that feeds you.

Bob, don't let the financi... (Below threshold)
Steve Crickmore:

Bob, don't let the financial crisis get in the way of your fixed opinions. Ayn Rand had it exactly right.

Recently, we had two Ayn Rand disciples who were in prominent government positions who were supposed to be protecting the public interest and investors and look what happened. How exactly right did they get it.

Time and again, Mr. Greenspan -- a revered figure affectionately nicknamed the Oracle -- proclaimed that risks could be handled by the markets themselves.

"Proposals to bring even minimalist regulation were basically rebuffed by Greenspan and various people in the Treasury," recalled Alan S. Blinder, a former Federal Reserve board member and an economist at Princeton University. "I think of him as consistently cheerleading on derivatives."

Mr. Greenspan, "Risks in financial markets, including derivatives markets, are being regulated by private parties," he said.

"There is nothing involved in federal regulation per se which makes it superior to market regulation."

And another Ayn Rand disciple, Christopher Cox, former Orange County Republican congressman, worked in tandem with Greenspan, as head of the SEC, was told by Bush to back off enforcement..of characters like Madoff. Great results there.

Ayn Rand may have written great fiction, but there are far far too many unscrupulous and greedy myopic Wall Street barons, for her libertarian philosphy to work, without firm and deterrent regulations and importantly regulators who have the evil to Rand, public interest in mind.

I wonder what Steve Crickmo... (Below threshold)
Rick Caird:

I wonder what Steve Crickmore is citing as his source for "as told by Bush to back off enforcement..of characters like Madoff". Somehow, I think he will come up the Democratic Underground as his reliable source.

Crickmore also begs the question as to where he is going to get these great regulators. Saying he want more and better regulation is not the same as having more and better regulation.

Then, too, he mananged to miss the whole thread on executive compensation. Lovely.

Rick

"There's always the slipper... (Below threshold)
bobby b:

"There's always the slippery slope argument, but if the cap only applies to institutions that are being bailed out by the tax payers I don't have much problem with it."
- - - - - -
- Farm subsidies;
- Water subsidies for most every company and individual in the western states;
- Power subsidies to CA;
- Subsidization of the house builders industry via mortgage deduction;
- Tax incentives for solar, wind, ethanol, hydraulic power;
and finally,
"We could have raised your rates this year by a huge amount, but we didn't, granting you in effect a huge subsidy from Working Families' pockets."

Damned slippery, really.




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