Obama Will Cap Nation's Fattest Executive Salaries Fueled by Bailout (VIDEO)

Imagine a bunch of executives being "limited" to half a million dollars a year; can they live on that?

(SALEM, Ore.) - President Barack Obama has ordered a half million dollar salary cap for the people who run America's biggest bailed out companies.

"For top executives to reward themselves these compensation packages in the midst of this economic crisis isn't just bad tase, it's bad strategy and I won't tolerate it as President."

Citigroup, AIG and the big auto manufacturers will fall under this new federal regulation and they will not be able to do very much with their assetts until the federal government is repaid.

The LA Times cites analysis prepared by Equilar Inc., of Redwood Shores, Calif., that the bigger the company, the bigger the impact will be. The group is an information services firm that specializes in executive compensation.

The top executives of companies with over $10 billion in assets paid out an average in 2007 of $11 million. The Times reports that the average base pay was $844,229, which is notably higher that the $500,000 cap annonced by Obama.

Those same top executives reportedly received average cash bonuses of more than $2.5 million, benefits and perquisites of $292,000 and average equity awards of almost $7.5 million, according to Equilar.

Top executives at middle-size institutions with assets between $1 billion and $9.9 billion, chief executives had an average base pay of $397,162 in 2007. Other compensation totalled nearly $900k, still over today's limit. The Times reported that the average cash bonus was $134,717, benefits and perquisites added $115,201 more, and awards from stocks meant another $211,674.

Institutions with less than $1 billion paid an average compensation of $384,000 to their top exec's in 2007. Their average base pay was $247,135, $76,339 came in cash bonuses, and various benefits averaged $38,514. In the smaller groups, stock average was $22,023.

Companies that already received federal money will not be affected by the cap, and it also will not affect more than $18 billion paid out last year to Wall Street firms when the stock market took a sharp dive.

The LA Times reports that those bonuses actually launched the "political outrage" that led to the call in Congress to limit executive pay.

Here is an AP video report with President Obama speaking on the salary caps:
Video

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JW February 9, 2009 10:55 am (Pacific time)

Editor: We have existing state and federal legislative processes in place to appropriate funds for countless projects. My opinion about this bailout, and a significant percentage of Americans are against it today (as per www.rasmussen.com) is because it is not a majority stimulus bill. I also like to see public parks and social programs, etc. , in place for our citizens and that is what we already have in place as a process on municipal, county, state and federal levels. Editor, when the bill passes no doubt there will be a list of pork spending that will shock many people. I doubt that list will be seen in the msm, but it will get out. When the American voter gets more information I guess we'll see what happens. If jobs are not created very quickly a new bailout will be attempted, but watch how funds are allocated to so-called blue and red political areas in this present one. My guess is that that allocation will be seen as a political calculus for future votes and we will continue as a divided nation. My opinion.

Henry Ruark February 8, 2009 3:32 pm (Pacific time)

JW: You wrote: "Radicals are trained in distraction, just be observant." True also of conservatives, false or otherwise, proven by full production of Alinsky book-of-answers re his points, often cited by some unaware it got into other hands, too. I have copy ready for reference. Re yr bailout pork-piles, note you do NOT specify details as to where in legislation, by whom, or any link to ANYthing. Is THAT not planned,perfected, performance-distraction, thus demonstrating precisely what you have the overwhelming gall to complain about ?? Must again use despised word "shill", since know from own experience that's exactly how one operates, however awkwardly it comes across sometimes.

JW February 8, 2009 8:23 am (Pacific time)

My guess is as people start getting informed about some of the appropriation pork projects of "their funds" for this so-called stimulus bailout, like paying for a "Frisbee Golf Course, "Dog Runs" and on and on, there will be a change coming allright. And the people who will be irrelevant may be a lot different than what the radicals currently think. If any of you get the time to do some research on the different pork projects in this bailout, ask yourself how is this one or that one, etc. , is going to stimulate the economy. Then listen to how different politicans and their supporters rationalze that spending. You're going to observe some major spin and new fables to reflect on. Then recall some of pre-America's history, like the Boston Tea Party. Watch what they do, not what they say. Radicals are trained in distraction, just be observant.

Editor: I see, so you just prefer killing innocent people with the money? I did plenty of research on Guantanomo, Afghanistan and Iraq. There are problems with the Stimulus package but not that many.
I actually like to see outdoor activities for families and their pets, I guess I'm wrong for that? You must think funding Haliburton was good, and funding families is bad? I only see that as flawed logic; something that can only be delivered by those who don't care about American families.

Henry Ruark February 7, 2009 10:00 am (Pacific time)

To all: Comments here prove up once again commonsense findings of longtime communications research that many are totally unable to carry on rational, reasonable cogitation, due to personality and psychological issues affecting the demanded processes. (Details, documentation on request to Editor with ID.) Millions now making same tough decisions, most will follow through on vote declaring huge mandate for Obama. Others will find themselves relegated to the realm of the irrelevant, and with good reason since "transformative change" always has heavy price paid by those unable to make the demanded progress for forward steps. Watch for further sure-signs of this progression in next several months in D.C. and every stste capital.

Snoozer February 6, 2009 9:11 am (Pacific time)

I think Tim King has too much money. I demand I be given some of his. If you don't, you're an immoral, selfish, anti-social cretin.

James February 5, 2009 7:16 pm (Pacific time)

Wow! Jacksmith needs to find some medication fast! I relaize you are uspet but your irrational call for everyone to get on board or get thrown out is ridiculous. In fact, it sounds kind of Bushish! We all have our own opionions about things and I would never discount someone for holding firm about their beliefs regardless of which side of the isle they represent.

Anonymous February 5, 2009 7:01 pm (Pacific time)

welcome to marxism. obama is a marxist, nothing else. shame on obama, shame on everyone who voted for this corrupt president. there is your change omaba people. and it sure is not hope for this country.

JW February 5, 2009 5:39 pm (Pacific time)

In time those corporations that have made the largest political contribtions will be outlined and then the public can match up who gets "capped" and who does not. Guess who were the biggest recipients of political donations from the wallstreet outfits? Number one is Sen. Chris Dodd and number two is...

jacksmith February 5, 2009 12:44 pm (Pacific time)

I AM SO ANGRY! Tom Daschle, and Nancy Killefer are two of the finest, and most competent public servants you could possibly hope for in these appointments. They have been assassinated by the Washington healthcare lobby through their paid Bush Republican henchmen in congress. These Bush republicans are the same people blocking the economic recovery plan put forth by the Obama administration. I am BURNING MAD America. And you should be too. Tome Daschle and Nancy Killefer were exactly what we needed to help turn this country around and fix our economy, and catastrophic healthcare crisis. If I were their boss I would tell them to get right back to Washington. And dare congress to not approve them. How ridiculous is it to reject highly qualified people that this country needs just because they made a mistake on their taxes. Don't stand for that anymore America. They apologized, and paid their taxes, and that should be it. Their country needs them. But President Obama has to do what he thinks is best. I understand that. I'M JUST SO MAD at the anti American Bush Republicans. Like many of you I have been trying to enjoy the after glow of this Beautiful historic election. But I see that the republicans in congress and their cohorts aren't going to be good sports, and LOSER'S! SO BE IT! In spite of President Obama's repeated offers, and gestures of collegiality to Republicans. Bush Republicans have seized upon every opportunity to stab President Obama in the back. And by doing so they are stabbing you, and the rest of the American people in the back. Well, you don't have to put up with that. And you shouldn't put up with that. President Obama has only been on the job two weeks. And he inherited two wars, and the worst economy since the great depression. We had an election. And president Obama, and the democrats won BIG. And Bush Republicans lost miserably! The Bush Republicans are the ones responsible for the worst economic crisis since the great depression. And the Bush Republicans are responsible for the worst healthcare crisis in American history. A healthcare crisis that is killing hundreds of thousands of you every year. Rich, middle class, and poor a like. Insured, and uninsured. Men, women, children, and babies. President Obama, and the Democrats should take back all the concessions they granted the Bush Republicans, and tell them to put up! or shut up! Everyone, start calling and contacting these Bush Republicans and tell them to stop blocking President Obama, and the Democrats recovery plan. And stop trying to block, and corrupt healthcare reform. Tell them to get on board with President Obama and the Democrats, or GET OUT!! If these Bush Republicans refuse to cooperate I want all of you to immediately begin the process of removing them from office by every legal means possible. Including impeachment, and recall. I want you to bring the full weight and power of the movement down on their heads that swept President Obama, and the Democrats into control of the whitehouse, and congress. Take no prisoners. Use all the techniques you learned over this past historic election. Be flexible, creative, adaptable, and relentless like you were in the past. To my cyber warriors I call on you again. You are among the best and the brightest. I call on you to move this fight from the cyber world to the living rooms, dens, and work places of the voters these Bush Republicans misrepresent. I know I can count on you. This is a fight worth fighting. To my fellow World citizens. As an American I invite, and welcome you and your advise, input, and help. By delaying Americas recovery, and healthcare reform, these Bush Republicans are delaying our commitment to your recovery, and to being the better America for you that we aspire too. I had hoped it would not come to this after our historic election. I had hoped that the Bush Republicans would respect the overpowering will of the people, and the World. But I guess not. All the Bush Republicans really care about is them-selves. Well, SO BE IT! Lets finish the job. Sincerely jacksmith --- Working Class :-)

conservative February 4, 2009 10:12 pm (Pacific time)

"For top executives to reward themselves these compensation packages in the midst of this economic crisis isn't just bad taste, it's bad strategy and I won't tolerate it as President." I think that's funny. But he tolerate hiring one tax dodger after the other one, one lobbyist after the other one, even so he promised the American People that he won't do that, he wants a bail out bill with 30% pork to pay off the people who elected him including ACORN who is under Federal Investigation for Voter Fraud. And I remember that he said in one of this speeches that "he will not sign a bill with pork". Well, I guess he lied. So who cares if some executives get some extra money? Is it only good for dirty politicians? You tell me!

Ted February 4, 2009 8:19 pm (Pacific time)

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.

Editor: News flash for Ted... the earth is not flat and Obama wasn't born on non-U.S. soil. Don't you realize how desperate you appear when you guys banter things like this silly, well established urban tale? You insult John McCain and Bush and everybody else you realize, by trying to suggest that one of their minions wouldn't have found something on this. They weren't born yesterday you know. Snopes and other fact finding sites state conclusively that Barack Obama was born here. And here's the kicker to me; I could care less if he was born a million miles from here, it has nothing to do with anything even if it wasn't BS.

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Obama Will Cap Nation's Fattest Executive Salaries Fueled by Bailout (VIDEO)

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