House Financial Services Committee Chairman Barney Frank (D-Mass) has long been a supporter of curbing executive pay. In 2007, the house passed say on pay legislation, but it died in the Senate. I spoke with him today about the administration's proposals. Basically, he's on board with what they are doing, but wants the SEC to have a larger role in restricting bonus awards.
In the interview he talks about shareholders being more effective because of a rule the SEC put in place that would give shareholders greater ability to toss out ineffective boards.
That rule is still in the proposal stage and business groups are against it. The so-called "proxy-access" rules have tried in the past and failed, so to say that this rule would give these proposals teeth may be true if it is finalized, but the rule is still in an early phase.
Comments
If no one is worth twelve million dollars and we should limit the amount of compensation where bailout money was provided, let's not stop at the CEOs. Public funds were used to subsidize the construction of new Yankee Stadium. New York City is in financial trouble and is probably getting some of New York State's stimulus money. Yet the Yankees are paying 3 players >$20 Million per year....to play baseball. Do you really think Alex Rodriquez is worth $27.5 million per year to play 3rd base when the chairman of a muti-billion corporation isn't worth half that much? I don't disagree that no one is worth twelve million a year; but let's not pick our spots.
By the way...while the democrats are so concerned about CEO's making seven figures, super-dem George Soros, one of the democrat's contributors, knocked down a cool $1.6 BILLION last year from his hedge fund.
I'd like to say more but I have to go now and watch the NBA playoffs where Kobie Bryant makes>$20 million per year to play basketball.
The only person that I am aware of the was worth Twelve million a year was Jesus and he is dead and gone. The others are skilled BS artists and crooks who will find a way to skew the law (not allow stock holders to have a say in compension)or steal from ue any way they can. The Republicans and they Democrats have both failed to protect us from too big too fail companies and crooked con artist comonly refered to as CEO's.
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buffoon, this man is a blow-hard and is responsible for the mess we are in.http://www.youtube.com/watch?v=RAuOEdttjZQ
posted by Dan S. at
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:)Snort (:
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One cannot always judge a politician by his wind.
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~~Yeltsin~
Would you guess that powerful people get more compensation from under the table than from sunlit tabletop?
Considering that possibility, would you guess that most CEO's would probably work for zero? But you would need a law that would enforce that they do not sell short on the company they control, a law that would prohibit short interest in the hands of their close associates, connections, family, mistress -- Awe -- fuget it!
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Barney is a complete buffone, this man is a blowhard and is responsible for the mess we are in.http://www.youtube.com/watch?v=RAuOEdttjZQ
How about a Say on the amount of Pay former senators (like Tom Daschle)and congressmen (like Tom Davis)earn as lobbyists after completing their public service? I guess it's not okay for individuals running multi-billion dollar corporations that employ tens of thousands of people to not make seven-figure incomes based on what they know but it's okay for these former champions of the working class to make seven-figure incomes because of who they know.
My say on pay.
Pay CEO's (or any professional), anything you want. However, the organization can only deduct an amount that is equivalent to the income and benefits that an average High School Principal would make in the same state. The "cost of doing business" has been a hiding place for excesses and waste since tax laws were invented.