US government seeks to rein in executive pay
US government seeks to rein in executive pay – Yahoo Finance.
Democrats and administration officials agreed that companies across the private sector need to adjust compensation practices to avoid damaging the economy.
Gene Sperling, a counselor to Treasury Secretary Timothy Geithner, said administration guidelines call on all publicly held companies to link compensation to long-term performance, not short-term gains.
“We believe that compensation practices must be better aligned with long-term value and prudent risk management at all firms, and not just for the financial services industry,” Sperling said.
The committee also heard from officials from the Federal Reserve and the Securities and Exchange Commission.
While the administration has approached the issue with caution, a top Republican said the plans amounted to “incessant government intervention.”
“The president cannot continue his heavy-handed meddling in the private sector and expect it to function, much less flourish,” said Rep. Tom Price, chairman of the Republican Study Committee.
More government intervention, i.e. more of the Obamanation Socialist Movement intervention into private enterprise will not help the economy. By the end of the second year of Obama in office, there will be little truly private industry left. The government will have so much control that it will in reality be a socialist economy.
They are already meddling in compensation practices with the unions which, by the way, is a major contributor to GM’s downfall and now they want more unionized policies for all businesses throughout every sector. First is executive pay being too high, next will be workers pay being too low, once that’s in complete government control, private business is dead. We are almost there now.
You got what you asked for, so now how do you dig yourself out of it?