Sep 22 2008
Are You Surprised?
In this morning’s Oregonian, one above the fold headline reads, “Democrats want CEOs to pay a price for a bailout.” Quoting from the article, “Congressional Democrats considering the Bush administration’s emergency plan to shor up the U.S. financial system on Sunday countered with their own demands, presenting draft legislation giving the government power to cut salaries of chief executives at firms that participate in the bailout and slash severance packages for their top management.
“democratic leader have broadly embraced the administration’s proposal to spend up to $700 billion to take troubled assets off the books of faltering firms and are not questioning the need to give the Treasury Department expansive authority to halt the meltdown in world markets.
“But by attempting to limit executive pay, they risk alienating key Republicans who object to such restrictions and delaying passage of the rescue plan, which in turn may stir renewed fear in the markets.”
Are you surprised it is Republicans who are fighting against pay cuts for greedy and incompetent CEOs? At what point does management need to take responsibility for messing up a company?
Lowell Herr
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