Wednesday, February 04, 2009

Obama to Cap Executive Pay?

If true “happy times”. Tom P has posted here on a report in the New York Times that President Obama is going to impose a cap of “only” $500,000 on the total salary of CEO’s whose companies receive large amounts of bail out money.

Good news! I assume that the same will happen here? Since surely we want to make our own markets “competitive” with the US?

This is still an absolutely huge amount of money for one person to “earn”.

Maybe this should a realistic earning ceiling for all companies? This should only be for exceptional performance. Ordinary shareholders (pension trustees and insurance policy holders) must be allowed to vote on CEO maximum remuneration packages.

This could result in a fairer and more equal society. The real end of history?

This is a 97.5% reduction I think for some (from $20 million). It is also roughly what the top CEO’s of British housing associations get (£327,000). A rethink here will also be in order?

TSA - is there anyone listening?


Ted said...

While it should go without saying that even a legitimate President's "ordered" $500,000 pay cap is an unenforceable intrusion into the private sector, as if that weren't enough, Obama LACKS EVEN OSTENSIBLE AUTHORITY to issue the order UNTIL HE OVERCOMES "RES IPSA LOQUITUR" BY SUPPLYING HIS LONG FORM BIRTH CERTIFICATE AND PROVING HIS ELIGIBILITY TO BE PRESIDENT UNDER ARTICLE 2 OF THE US CONSTITUTION.

Anonymous said...

Is that be the same private sector that Dubya nationalised?

As to your canard,snopes .com dedunks it very effectively

Anonymous said...

How about a cap on MP's pay and pensions, or a cap on Union bosses pay? Lets vote on the head of Unisons company car level. How about union members voting for their union bosses pay. Or better still - let council tax payers vote on the pay of town hall staff...we could put a cap on their unequal pensions. They cost a lot more than a handful of CEO's. Infact heading a townhall is massively lucrative and of course safe..not to mention the fact that they do bugger all. How about cap on council tax to keep it to at least inflation rate only? What a load of biased crap. Lord Snooty

Anonymous said...

Obama's birth certificate? Try not to be a total berk.

Anonymous said...

Short for "Sh*t head"

Anonymous said...

Just fancy that?
The general secretaries of Britain's 15 biggest unions earn between £80,000 and £110,000 in basic salary, the latest accounts show.

But some union bosses can earn almost double their salary in benefits, according to new figures which contrast sharply with the millions of union members worried about their job security during a period of financial uncertainty.

Derek Simpson, joint general secretary of Unite, Britain's biggest trade union, received £89,035 in benefits on top of his £105,217 salary in 2007 - the largest package of any general secretary.

Despite pledging to be a "no-frills" leader when he was elected in 2002, Mr Simpson's total pay and perks, which include pension, housing benefit, employers' national insurance and car benefit, came to £194,252.

Mr Simpson's salary and benefits work out at £82,050 more than the other joint general secretary at Unite, Tony Woodley.

Mr Woodley's own perks came under scrutiny last month when it was reported he was seeking a lump sum of up to £100,000 to vacate a heavily subsidised London flat granted to him as an inter-union favour by the Confederation of Shipbuilding and Engineering Unions (CSEU).

Details about the internal workings of trade unions are held by the certification officer, whose website outlines the salaries and benefits of a number of union general secretaries.

Keith Norman, the general secretary of Aslef, the train drivers' union, received £21,141 for car and accommodation on top of his £71,381 gross salary.

Dave Prentice, who runs Unison, receive £11,646 in expenses and a car, while Paul Kenny, the head of GMB, received £8,000 for car travel and £26,000 pension contributions on top of his £81,000 salary.

The highest pension contribution of the main unions went to Matt Wrack of the Fire Brigades Union, who received £44,281 on top of £5,134 in car allowance as well as a £66,389 salary.

Anonymous said...

Unbelievable..I'm a card carrying union memeber I had no idea they were earning this? Is it true?

Anonymous said...

Its incredible are Union bosses really getting this pay? At least I have seen our MD. I can't ever remember seeing the head of the Union or even the regional head of the union come to that?

Anonymous said...

So what least they try to keep people in work, unlike the greedy bankers who take and don't give a toss. they are worth every penny this is from a union member of 22 years..

Anonymous said...

Unions don't create jobs my friend.

Charlie Marks said...

John, the problem with this is that this is only a public sector pay cap, in effect - so when those bailed out companies pay back their govt loans, they can go back to business as usual! Two cheers for Obama on this one, I'm afraid.

As for UK union leaders - yes, they are paid too much, and they should take the wage of an average skilled worker. But this isn't the issue at hand.

Anonymous said...

What about a cap on Labours town hall explosion in wages - heading a local council is the best bet to get on the gravy train nowdays - you can be talentless, get your seven weeks on the sick, underperform, charge beyond inflatioin poll tax rates...these are the real fat cats.

Anonymous said...

Cor the truth is coming out now - Brown knighted then appointed Crosby to the FSA! No more boom or bust! - Britain is "well placed" to survive the economic downturn!! I guess -4% growth in the next twelve months bears all this out? Britains most successful postwar chancellor! Where are the 100,000 jobs he is going to create? Ha, Ha, Ha! Labour is economically incompetent...where are all the boasts now! What a brilliantly successful strategy - and the cut in interest rates - inspired!