Obama To Set Compensation Cap
By: Import User
Updated: February 4, 2009
(Washington, DC) -- President Obama will put a lid on compensation for executives at companies receiving taxpayer bailouts today.
Obama will establish a 500,000 annual compensation as a way to hold down excessive corporate pay.
The announcement is scheduled to come from Obama and Treasury Secretary Tim Geithner at the White House at 11 a.m., Eastern time.
An administration official says banks and other companies that get government funds would have to follow the new course in the future.
It's part of Obama's effort to give financial regulation a make-over and pump life into the ailing economy.
It will launch long-term measures to harness high salaries on Wall Street, including steps to require all public financial institutions to make compensation arrangements known.
Last week, Obama called Wall Street bankers "shameful" for giving themselves billions of dollars in bonuses despite the financial crisis and government bail-out.
He told CNN on Tuesday that very clear conditions will be established.
He emphasized that it's not a government takeover and private enterprise will still take place, but people will be held accountable and responsible.
(Copyright 2009 by Newsroom Solutions)
