Obama: Excessive pay ‘does offend our values’


Do you want to know what offends me and my fellow hard-working Americans, Mr. President? Having a government tell people how much they should make and actually define what excessive is. It also offends me that we have a position of “Pay Czar” and that this person at his sole discretion decides how much people can make. Yet Freddie Mac is giving its chief financial officer compensation worth as much as $5.5 million, including a $2 million signing bonus. The government-controlled mortgage finance company doesn’t have to follow the executive compensation rules because it is being paid outside the TARP. This is government hypocrisy at its finest.

WASHINGTON – The Treasury Department on Thursday ordered seven companies that received billions of dollars in government bailouts to halve total compensation for their top executives. But the big reductions will not apply to pay earned before November.

Kenneth Feinberg, the Treasury official leading the pay review, told reporters that average salaries for the top 25 executives are being cut 90 percent starting next month.

The action will apply to the top executives at Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

Meanwhile, the Federal Reserve unveiled a proposal Thursday that for the first time would police banks’ pay policies to ensure they don’t encourage employees to take reckless gambles like those that contributed to the financial crisis.

Read the rest of the article here:

http://www.msnbc.msn.com/id/33428472/ns/business-us_business/

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Filed under Barack Obama, Economy, TARP

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