Wednesday, February 4, 2009

$500K Executive Salaries

In a shocking move, Obama has issued an order that caps the pay of executives in companies receiving TARP money at $500,000 per year.  We have seen in the past year that opening the company pocketbook to pay as much money as is necessary to attract the best and brightest CEOs doesn't guarantee good results, I wonder what happens when these companies can't compete with firms in other industries who are free to pay as much as necessary to attract these top talents.

1 comment:

Ishita said...

Are you suggesting that there should be no cap on the salaries of ceos of firms that are being bailed out with tax money? Does the highest salary always guarantee the best candidate?