A few months ago the country was outraged at the amount of compensation that the CEOs of the bailout companies were still getting even after accepting bailout cash. There was a ground swell of populist anger toward the corporations and the Obama Admin for allowing the people that caused the economic crisis to be generously compensated.
If people recall, there was much anger and chatter about forcing these CEOs into returning their bonuses and such. And Congress got involved in the outrage and Senators like Dodd added their two cents and said that there woulkd be changes for any company receiving taxpayer money.
Treasury Secretary Geither has said according to the AP:
Financial sector executives should not fear government imposed caps on their salaries even as the Obama administration moves to influence how firms pay their employees. Treasury Secretary Timothy Geithner said Monday that government should place “broad constraints” on the incentives that huge pay packages create for executives to take short-term risks. But he drew the line at government determining levels of pay.”I don’t think our government should set caps on compensation.”
Geithner said government standards could require that incentive pay be tied to long-term performance. He said such standards could combine with compensation disclosure requirements and giving shareholders the ability to vote on salary packages — a practice known as “say on pay.”
Basically, what is being said by Geithner is that the execs can keep their generous and mostly unwarranted bonuses. The people’s anger was for naught and NO ONE in Washington and the Admin is listening to their concerns.
Once again Wall Street gets the mine….Main Street gets the shaft.