Closing Arguments: Capping Executive Pay

Hi, it should never be the government’s place to tell any company how much to pay their employees. The government should not be using our tax money to bail out these companies, either they succeed and grow or fail and change or die. Government sticking their finger in the pot causes more problems than it fixes.

I don’t have a problem with it. In fact, I think it would be a great idea for Obama to go ahead and use the constitution for toliet paper also.

No. the government has too much control and we are going to be like Russia if it continues. We had better stop Socialism now!!!

Who is next????? Your boss, you? When are Citizens & the Media going to wake up??????

The government should not dictate salaries of companies. And they should not have given irresponsible companies bail-out money. And the government should not have made ‘mandates’ for companies to give loans to unqualified (high-risk) people.
We need the government to get their hands out of more things. (Like health care, insurance [FDIC], and make it more private and less regulated).
With Bush/Congress and Obama/Congress bailing out everyone.. Inflation is coming..

What a ridiculous notion! Our federal government needs to stay out of the business of private companies. We should all quiver in fear at the very thought!

Our federal government should execute their newly found dictatorial power to stop their leader, our great president ,from smoking before they delve into the ordinary citizen’s private life. Compensation in a public or private company is the pervue of that company. Federal governence of companies can continue to regulate those companies out of existence.

This socialist president and his cabinet have no business whatsoever sticking their nose in private companies. They can’t even keep track of their so called stimulus money and have done nothing so far but destroy the economy. Stay out of the private sector and clean up your won incompetent internal mess.

Last I checked the US Constitution, that’s not a power delegated to the federal government. When will the majority of our citizens remember that the government still derives its power from the consent of the government? If we don’t DEMAND our elected officials do the right thing and stay within the boundaries established by our founding documents, it will run all “willy-nilly” over our rights.

Why don’t we just turn the country over to the Chinese now and get it over with? If the government is going to come right out and kill individual initiative by telling us how much money we are allowed to make, we might aas well stop pretending this is still America.

The government has NO business interfering in salary schedules at privately held companies. If a company is poorly managed and is paying more in salaries than is prudent, it will (and should) fail. I have always been taught that the entrepreneurial spirit of this country would then prevail, allowing for the failing company to be re-born under better management. If we don’t allow for this “circle of life” in business and if we begin legislating the protection of poorly managed companies, we leave no incentive for true success and achievement – the ideals this country is built upon.

The federal government should not have a say in setting the salaries and bonuses of employees at private companies, and certainly not if the company does not need government help! Obama is moving as fast as he can to turn this into Russia. Where are you America? The changes to a socialist government is abounding at breakneck speed every day! Please stand up and make your voices heard!

I feel that the governemt has the right to request a cap on executive salaries on companies that have accepted government money. It is the responsibility of the board members of private companies to monitor the performance of its head executives. understandably, the White House is attempting to intervene in the excess and greed that has existed in America for far too long. I have worked in corporations where the CEO’s were reaping a huge profit for poor or mediocre performance. this process has to end ! It’s apparent that the companies who did take tarp money are rushing to pay it back as they do not want the government involved in their pay structure. It is a very interesting conversation her , we’ll see where it goes !

I think somebody should look at all these excutives who get high pay and leave a company in ruins. Just what did they get bonuses for. The Company that was viable, is not. They get paid just for their title.If thing s go wrong it is not reflected in their pay. Yes, if it takes the government to regulate it so be it.

No. The federal govermnent should not regulate wages in the private sector. We are not a socialist nation yet, but it seems we are headed that way. It is time for the common person to stand up and make a change.

Wow. First the government starts buying out the automobile industry and pushing a 4 billion dollar monopoly gamble to acquire used vehicles and therefore control a large percentage of that market. Now we can look forward this bill being shoved down our throats through the senate. So after they start telling us, the public, how much we should make, when do we start forming lines for toilet paper and other necessities? Does anyone remember ‘Atlas Shrugged’ or ‘The Fountainhead’? Quick, before they close it down Google ‘Ayn Rand’. Pick three works at random and tell me this isn’t predicted already.

Are we living in the US? This is a capitalist society, and the govt. has NO business setting income caps! Profit has become a dirty word. Businesses small and large are being destroyed. What a terrible path we are on. America as we have known it is over unless we stand up and refuse to go down this damaging path. WHO WILL BE PRODUCTIVE IF THIS CONTINUES? WAKE UP!This administration is so, so dangerous!

I don’t agree with government controlling things. But, something needs to change. Corporate America is out of control in this country. Since when is ANY executive worth millions of dollars every year while they withhold fair compensation to employees and cut U.S. jobs. Wake up!!! If they can’t behave themselves then maybe somebody needs to show them the way. To me, it needs to be the American people saying “we have had enough” versus government regulations. I think more needs to get out to the public about Executive compensation. Good example of what is fair: the CEO of Costco. Many examples of what is not equitable are available. It’s not just Wall Street, the banks and the auto industry. It’s all over.

Absolutely not! That form of government has always made the people poor. It steals the incentive out of your labor and removes hard workers from the workforce. The united States has always been a place of opportunity. Look at the years of people coming in to this country. Controlling salaries in the public sector models our country after failed world systems. What a surprise for the American communist party to suggest such a thing. Whats next… take the gold again?

Absolutely NOT appropriate in a capitalist society. We are being led down a dangerous & damaging path. WAKE UP! Who will be productive in this environment? This administration is destroying free enterprise, and it makes me sick for the country I have loved.

Should the federal government have a say in setting the salaries and bonuses of employees at private companies, even if the company does not need government help? Yes! It is the responsibility of the federal Government to regulate companies for the good of society. Some CEO’s have been robbing shareholders, employees, customers and society far too long. This problem has nothing to do with socialism.

I don’t have a problem with it. In fact, Obama should go ahead and use the constitution as toliet paper while he is at it.

Absolutely not! The government has no right to tell a private business what they can pay employees. If someone doesn’t like how the company compensation plan works, then take your business elsewhere. That’s why America is a FREE country.

This democratic whitehouse and congress are out of control! We have got to take our country back now before we are the United socialist states of America. We are losing our country more and more each day. It’s unbelievable the path our elected officials are taking us down. Capping executive pay – please!
It does do my heart good to see that most of the responses so far are along the lines of mine. I thought the whole country was liberal by the sounds of the media.

the government does not belong messing in the affairs of a private business. its like the government’s saying what we can and can not do in our own homes.

It’s disgusting that America is turning into Europe. The fathers of our nation fought against a Government that controled everything. What is wrong with people??? I really don’t understand and obviously the so called americans that are voting for the people that are representing us need to wake up and become informed and not just through the nightly news. If you haven’t figured it out yet, they only follow the networks agenda, not always the truth.

The federal government should have NO control of salaries paid in private businesses. Did you notice that yet another position is being created to oversee this travesty? We have a car czar, a web czar, and now a pay czar. The executive branch of the government is out of control because it is backed by democrat-controlled legislative branch.

The executive pay scale has been out of control for a long time. Wall Street executives like to make the argument that they need to stay competitive to attract talents. What talents we have had who led us to the economic collapse! The overpaid executives have the talent to keep workers’ pay low and to ship jobs abroad (that is a no brainer) in order to award themselves for a job well done. What talent does GM’s Wagner have? He was well (or rather over) paid. Look where GM is now.
Whether the government should be in the business of deciding the pay structure of executives is the wrong question. The government has to do something when the people in question cannot do it themselves.
There should be a constant worldwide comparison and monitor of executive pay and compensation of comparable companies, by size, by industry, etc.
Such a study will show that American executives have been overpaid and under performed. If they are real talents, they would not have run their companies to the ground en mass. They are mostly mediocre greedy bunch with low ethical standards.
What is the compensation for anyway? How many beds can a person sleep in at one time? How much food can a person digest in a life time? By excessive compensation, they may succeed in ruining many people’s lives. I remember GM’s Wagner responding to the question if he would accept an annual salary of $1 and give up the private jet at a Congressional hearing. His response was what he was getting then was just fine. Obviously, he didn’t think there was anything wrong with the picture.
The real question is what the Boards of these companies have been doing? Asleep at the job, allowing executives run away with unreasonable pay while the companies are in trouble?
In politics, we practice “checks and balances.” Where is the “check and balance” in executive pay? The executives are insatiable and the Boards are lazy, or worse, incestuous with the executives. A shareholders’ revolt is not likely.
So, the government has to step in. Most of the comments posted so far cry loudly against government control. However, they don’t address the bigger picture.

I was in 2 wars, WWII & K, so we could remain free to work our butts off towards that $$$$ dream the constitution says we get to have! Ever since the past election, SOCIALISM seems to be the word on the streets of DC. Get wise folks: if you can’t see what is happening, then listen to what the non-political and non-news are saying. AND, go to church!!

It should never be a question whether or not the Government should cap executive salaries! I’m not an executive, nor am I even in a place of high stature such as a CEO,COO,CFO, or what have you. However, it has never been the Governments place let alone the right to do such a thing. I fear as an American citizen that this country is headed in the wrong direction entirely way too fast. If we keep moving in this direction an letting the National Government overstep its bounds like this we as Americans will no longer have the right to choose anything for ourselves or our children.

Obviously, you folks aren’t shareholders in these companies! Most of them are paying these ridiculous salaries to failing companies, and giving the shareholders nothing, or as little as possible. When we send in our proxies, the Directors tell us to vote “no” on shareholder resolutions. They don’t listen to shareholders, so they need to listen to regulations by the federal government.

Can you say, Hello comrades! Looks like another step to Comunism. We don’t live in a free country anymore when the government puts caps on your income. I guess there is no American dream worth dreaming about if you work your ass off your whole life to be told, well, you see, you just make too much money, give it all to the guy on his ass playing video games in his parents basement.

I agree strongly with Wendy above. We live in America! A FREE and democratic society with the best Constitution ever. The City, State and Federal governments do not have a right to dictate how much money a person can earn. The compensation limits are set by a FREE market.

ABSOLUTELY NOT!!!

I have been a political fence sitter most of my life – but no more. Having just watched the mass media participate in electing a flim flam man as president and now watching this empty suit dismantle the world’s greatest economy is enough to make me physically ill. This executive pay thing is just a continuation of a four yr. nightmare that smacks of socialism. If you want to see where we’re really headed, check-out Mark Steyn’s article in Hillsdale college’s latest issue of the Imprimus newsletter where you’ll learn about things like socialized health care in England where they come into your house and count the Twinkies in your cupboard and base their decisions regarding your healthcare on their findings. Yes they can !

No, a thousand times no. A weak case could be made for the federal government’s oversight of executive compensation in companies receiving bail-out money; however, government oversight should not extend to those companies not receiving bail-outs.
For a long time I have felt that executive compensation has gotten out of control; but this should be corrected by the stockholders, not the federal government.
Where does it end? Should we have government oversight of the compensation for media personalities, TV anchors, professional athletes, actors, and the list could go on and on.
Government price controls usually result in the misallocation of resources.

Maybe we should appoint a pay/go czar to oversee that the government doesn’t spend money it doesn’t have. He could have power to remove any polititian who doesn’t balance the budget…. Oh wait a second that would mean Obama would be out of a job – since he already has spent a cool trillion (that is all borrowed by the way) in his first 4 months. Second thoughts about electing a “community organizer” instead of someone that actually understands how companies and oh I don’t know government work?

These days, the average CEO in the USA makes 885 times more than minimum wage, and the average CEO makes 364 times more than the average employee in their company. The strange thing is, CEO payment seems to have zero relation to company performance. Here’s the thing – CEO payment is a 100% tax write off for comapnies! There was a bill in Congress that removes the tax write off for CEOs making more than 25 times the company average employee’s wage. Personally, I’d be happy with 100 times. Other countries CEOS make much much less that US CEOS. At 25 times (or 100 times) the average employee’s wage, if the CEO is paid more, so is the average employee – and everybody wins.
- Bill

The government’s job is to protect the people – and protect the weak from bullies.
These days, the average CEO in the USA makes 885 times more than minimum wage, and the average CEO makes 364 times more than the average employee in their company. Other countries CEOs make much much less that US CEOs – and are more competitive because they do not have the insane overhead of our companies.
The strange thing is, CEO payment seems to have zero relation to company performance – bonuses for CEOs of failing companies? Here’s the thing – CEO payment is a 100% tax write off for companies! There was a bill in Congress that removes the tax write off for CEOs making more than 25 times the company average employee’s wage. Personally, I’d be happy with 100 times. At 25 times (or 100 times) the average employee’s wage, if the CEO is paid more, so is the average employee – and everybody wins.
The 25 times thing comes from several sources, including a policy study and (I believe) a Warren Buffett lead group for company reforms. Fair and honest CEOs back it.
- Bill

Anybody still naive enough to believe the U.S. is not a socialist country? Only a matter of time – and not much of that – before we can ascribe to being “third world.” I hope all you folks who voted for “change” are happy with what you got.

NO Way! We are a free country and business should fail or succeed according to the open market and good or bad management which includes how much employees get paid. Government has no business being in private business!

I think that there could very well be a executive pay cap set by the federal government. Does government not set the minimum pay rate? So, they can set a maximum pay rate in my opinion, because corporations do have a responsibility not only to their shareholders, but the workers and the people that live from them. In the past they did not have to be reminded of these things, but more and more that falls to the wayside. Most of the corporations have not paid federal income tax according to the GAO, so what does that tell you? Yes, let the government direct their pay. These corporations do right by the people in other countries who have universal healthcare and all the benefits they think will destroy America…

The recession would have never happened had Bush instituted executive pay caps…

Capping excessive pay is a great idea.
Let’s start with school superintendents and college chancellors. Those postitions are way over paid with tax dollars. And fire the assistants and the assistants to the assistants. Worthless over paid fools that can’t do their own jobs and need fools to do it for them.

In the current economic environment, you can’t ask for minimal or zero government intervention and still expect your brother or cousin not to lose their house and/or their job unfairly. It’s a zero-sum game. Interesting how people are quick to talk about socialism, free market, and tyranny, and freely invoke Russia and China. Not sure what all that means (actually, not sure people making these references know either.) I share the premise that government shouldn’t intrude in private life, and I’m also for meritocratic compensation, but executive compensation has gotten way out of hand. I’m afraid government is the only force capable of effecting change in this situation. The “free market” has failed when CEOs like Pfizer chief Hank McKinnell and Home Depot’s Robert Nardelli walk away with over 200M each while their companies stocks had steadily declined over the same period. Both companies then laid off honest, hard working Americans. I’m not for capping compensation but I am for linking compensation to company performance – if a CEO’s comp triples over standard, company stock should triple as well! Otherwise it’s embezzlement. Some would say that’s what boards and shareholders are for (i.e., accountability)- In theory yes, in practice no! Boards an management have always scratched each others backs. And few shareholders have much of a say. In sum, it’s an outrageously unfair situation and someone has to fix it.

Even though I think some of the salaries and golden parachutes that executives receive are obscene and the executives should be embarrassed to accept them, the government does NOT need to be in the business of setting salaries for the private sector. That is what private sector means. The government has enough to do without setting up another department/agency which will have it’s own bureaucracy. We need less government, not more.

I notice that Obama does not want to control the salaries of the Hollywood elite or that of the trial lawyers. That would be suicide, killing the Democratic Part’s cash cows.

If a company took TARP money, the CEO’s salary should be directly tied to results based on how quickly they pay main street back.
As for CEO Comp in the private/public sector, let shareholders decide, it is their money on the hook.
As for Obama, this is a kitty cat trying to keep the lions in check…and screwing it up like no other before him.