Exec Pay Cap = Sen. Dodd Job Protection? -- Swamp Politics
You don't have to be a Wall Street money magnet to be concerned about the unintended consequences from a provision tucked into the $787 billion economic stimulus bill that would limit executive pay.
Reports for a few days have said Sen. Chris Dodd placed in the legislation limits on bonuses and other compensation for senior executives whose companies receive federal money.
The New York Times has a report with a good description of the limits.
The pay restrictions resemble those that the Treasury Department announced this month, but are likely to ensnare more executives at many more companies and also to cut more deeply into the bonuses that often account for the bulk of annual pay.
The restriction with the most bite would bar top executives from receiving bonuses exceeding one-third of their annual pay. Any bonus would have to be in the form of long-term incentives, like restricted stock, which could not be cashed out until the TARP money was repaid in full...
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My Comment: Politics always makes strange bedfellows. The bankers and the business elite who were more than generous in giving Sen. Dodd mortgage benefits and campaign contributions are now being "screwed" by him in terms of pay caps and bonuses.
I can only hope that the idiots who gave him so much are now waking up to what they have been helping to elect to the Senate these past 30 years.