The accounting is to be handled by the IRS which presumably means there will be no consequences as long as the corporations just make a "mistake" and overpay the executives.
Wednesday, February 4, 2009 12:30 PM
NATIONAL JOURNAL
By DAVID HERBERT
President Obama torched Wall Street executives during a morning press conference to announce that firms receiving "extraordinary" federal aid must limit CEO pay at $500,000 a year.
"We all need to take responsibility," said Obama, who was flanked by Treasury Secretary Timothy Geithner. "And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves their customary lavish bonuses. As I said last week, that's the height of irresponsibility. It's shameful."
The new Treasury Department guidelines cap executive pay at $500,000 a year for financial firms receiving "exceptional assistance" (as opposed to more widely available capital access programs). Any amount beyond that must be made in restricted stock options that can be cashed in only after the government has been paid back.
Obama also used the press conference to make another pitch for his stimulus package, which hasn't won over a critical mass of lawmakers. The plan as it stands now is not perfect, he admitted, "but let's not make the perfect the enemy of the essential. Let's show people all over our country who are looking for leadership in this difficult time that we are equal to the task."
Seventy-five percent of Americans favor passing a package in some form, according to a Gallup poll released Tuesday, but 54 percent either want to make changes or reject it entirely.
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