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Wall Street bonuses to be capped – Finally

February 5, 2009

And not a moment too soon.

Enough of the nonsense, Obama says. If you receive bailout money, then we’ll cap your annual executive basic pay to no more than $500k. Take it or leave it.

Obama himself earns merely $400k a year.

And what about bonuses in addition to basic pay?

“They will come in the form of stock that can’t be paid up until taxpayers are paid back for their assistance”.”

Now we’re talking.

The response? According to BBC’s report, Mark Poerio of law firm Paul Hastings had this to say.

“If you have someone who was making well over $1m, and now they are capped at $500,000, it is very conceivable that they are going to look to go to a company that is not subject to those limitations.”

And true enough, Wall Street is critical of the idea as is expected of institutions who live by OPM (other people’s money). Any loss should be born by the people, not us, they say.

Good. Then let the smaller investment banks take those who were behind the massive losses, including those who use shareholder money to adorn their high offices with “commodes with legs“.

To those who cry socialism at Obama’s plan to cap executive salaries and perks, I say act like real capitalists and make do with your own money. Its still not too late to withdraw your application for a bailout you know.

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4 Comments leave one →
  1. LC Teh permalink
    February 5, 2009 2:07 pm

    Talk about moving goalposts… Do these folks really need all that money while ordinary folks go jobless and hungry in view of the trying times? Or are these remuneration packages just like trophies to them? Again, ‘the world has enough for everyone’s needs…’ but this seems like a contest to see who makes more.
    Yeah, you’re right, I don’t get it.

    There’s one word for it – corporate greed. Ok that’s two words. 🙂

  2. February 5, 2009 7:44 pm

    I think this is a really good move by Obama. 🙂 He can get rid of those useless and expensive fools in Wall Street once and for all 😛

    The way Wall St is talking, its as if money is a drug. They get massive withdrawal symptoms if they don’t get any.

  3. LC Teh permalink
    February 6, 2009 9:15 am

    Heheh… I imagine those ‘expensive fools’ laughing on the way to the bank… (Oh! Where’s the bank…?!)

    And then there’s the big bundles of notes that are seemingly reduced to the value of Zimbabwean dollars as the dying old man hugs it and die smiling…

    At the rate they’re going, am not suprised if everyone starts trading in Renminbi or the Euro soon, hehe.

  4. February 6, 2009 5:07 pm

    I was also frustrated at CEO getting all the perks with no performance tie to it. Imagine they cutting ppl’s pay, retrench et. al. All the savings go into their perks and telling the employees that cutting pay will save many jobs.

    I have a feeling things wil change soon and we’ll be seeing lots of CEOs changing jobs.

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