Good News: Executive pay limits at bailed out companies

Yay!The NY Times is reporting that the Obama administration is proposing executive compensation limits at seven bailed out companies: AIG, Citigroup, Bank of America, GM, GMAC, Chrysler and Chrysler Financial.

That’s excellent news in and of itself. These now largely government funded organizations should have pay scales more in line with other government agencies, until they are reprivatized.

The better news out of this proposal is this:

The new plan also calls on Congress to adopt legislation that would let shareholders vote on pay levels and require public companies to strengthen the independence of board panels that set executive pay.

For far too long CEOs and boards of public companies have ignored the best interests of the company and their shareholders by approving self-serving salaries, bonuses and lavish severance packages (a.k.a., golden parachutes).

2 Comments

  1. Ian

    Small victories.

  2. Biff

    Wrong, Ian! This is a huge progressive victory by President Obama! It’s just the change we’ve been hoping for and a big victory for our team. Say goodbye to lavish severance packages!