Obama Wants Limits On Executive Compensation
The office of President-elect Obama sent a letter to Congress moments ago, requesting the second half of the $700 billion government bailout/rescue plan.
More importantly, the letter sets out some of Obama's conditions on entities that get the money.
Among them, limits on executive compensation and dividend payments.
From the letter: "Those receiving exceptional assistance will be subject to tough but sensible conditions that limit executive compensation until taxpayer money is paid back, ban dividend payments beyond de minimis [very small] amounts, and put limits on stock buybacks and the acquisition of already financially strong companies."
The letter strikes a strong and self-confident tone:
"President-elect Obama believes there has been too little transparency and accountability; too much upside for financial institutions and executives who acted irresponsibly without providing enough help for small business owners, families who are struggling to keep their jobs and make ends meet, and innocent homeowners.
That will change when President-elect Obama takes office," the letter reads. (On his first day?)
Perhaps throwing a little scrap of red meat to America's remaining free-marketers [ARFM], the letter concludes: "We will seek to replace investments made by the U.S. government with private investments as quickly as possible."
January 12, 2009; 1:04 PM ET
Categories: The Ticker | Tags: Obama, stimulus plan
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