Obama; screw the Constitution.

[03_SHOOTER]

Obama sets executive pay limits

WASHINGTON (CNN) -- Pledging to take "the air out of golden parachutes," President Obama announced Wednesday that executives of companies receiving federal bailout money will have their pay capped at $500,000 under a revised financial compensation plan.

$500,000 will be the limit on executive salaries at companies receiving tax dollars, President Obama says.

Last year's "shameful" handout of $18 billion in Wall Street bonuses "is exactly the kind of disregard for the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else," Obama said to reporters at the White House.

"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn't just bad taste -- it's a bad strategy -- and I will not tolerate it. We're going to be demanding some restraint in exchange for federal aid -- so that when firms seek new federal dollars, we won't find them up to the same old tricks," the president added.

Under Obama's plan, companies that want to pay their executives more than $500,000 will have to do so through stocks that cannot be sold until the companies pay back the money they borrow from the government. The rules will be implemented by the Treasury Department and do not need to be approved by Congress.

The restrictions will most affect large companies that receive "exceptional assistance," such as Citigroup.

The struggling banking giant has taken about $45 billion from the government's Troubled Asset Relief Program.

The new rules also will mandate that shareholders of banks have a greater say about the salaries paid to company heads. The measures will put in place greater transparency for costs such as holiday parties and office renovations.

Obama also pledged further reforms in the future, promising that the administration will "examine the ways in which the means and manner of executive compensation have contributed to a reckless culture and quarter-by-quarter mentality that in turn have wrought havoc in our financial system." Watch Obama talk about limiting executive salaries »

"We're going to be taking a look at broader reforms so that executives are compensated for sound risk management and rewarded for growth measured over years, not just days or weeks," Obama said.

Well, let's see, there's no provision anywhere in the Constitution for bailing out private business, and there's no provision anywhere in the Constitution for the government to tell private business how much they can pay their people either. So not only is the Kenyan illegal immigrant doing everything in his power to surround himself with people who have absolutely no regard for the Constitution or the Constitutional laws of America, he's intentionally working to subvert it himself! Is it too early to call for impeachment yet? The idiot hasn't even been in office a month yet, and he's already violated his Oath of Office!

[devin0116]

If it is against the constitution, can't we agree that their bonuses are unecessary and ridiculously huge?

[Ben Shotalot]

Originally Posted by devin0116

If it is against the constitution, can't we agree that their bonuses are unnecessary and ridiculously huge?

This sentence makes no sense.

But that being said, yes it is against the Constitution. And we can agree that some are grossly overpaid. But it is not the government who should tell the companies what an employee is worth. Especially if we give them the money and then tell them after the fact that there are strings to the money that they have already received??

If you think that because we helped the company with a subsidy that we can make such a kingly decree, then I guess that students who get government loans can be told what jobs they can take, and how much they can earn?

If we can dictate how much a CEO can make then we will get those who are willing to make $400,000 a year and not the millions for they get for making the company viable, then I guess we will get what we pay for. Usually a lower quality candidate who will accept less cash then the next guy who has talents. IE: The President of the United States gets $400K a year, and look what we ended up with. Low quality.

If you want socialism then I suggest you go to one of the great prospering countries where it is working or has worked, such as....... well, ummmmmm, let's see there is...... ahhh *cough* let's see the great country of...... umm, .....I'll get back to you. Maybe not.

[TruBlu]

Socialist reform! That's now four instances in the past 17 days that greatly decrease America's security, standards, and oh the Constitution now. Hope...

[TruBlu]

Thought this would be valuable to the thread.

Originally Posted by HR1, Division B, Title VI

Subtitle B--Limits on Executive Compensation

SEC. 6011. SHORT TITLE.

This subtitle may be cited as the `Cap Executive Officer Pay Act of 2009'.

SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION.

(a) In General- Notwithstanding any other provision of law or agreement to the contrary, no person who is an officer, director, executive, or other employee of a financial institution or other entity that receives or has received funds under the Troubled Asset Relief Program (or `TARP'), established under section 101 of the Emergency Economic Stabilization Act of 2008, may receive annual compensation in excess of the amount of compensation paid to the President of the United States.

(b) Duration- The limitation in subsection (a) shall be a condition of the receipt of assistance under the TARP, and of any modification to such assistance that was received on or before the date of enactment of this Act, and shall remain in effect with respect to each financial institution or other entity that receives such assistance or modification for the duration of the assistance or obligation provided under the TARP.

SEC. 6013. RULEMAKING AUTHORITY.

The Secretary shall expeditiously issue such rules as are necessary to carry out this subtitle, including with respect to reimbursement of compensation amounts, as appropriate.

SEC. 6014. COMPENSATION.

As used in this subtitle, the term `compensation' includes wages, salary, deferred compensation, retirement contributions, options, bonuses, property, and any other form of compensation or bonus that the Secretary of the Treasury determines is appropriate.

Subtitle C--Excessive Bonuses

SEC. 6021. TREATMENT OF EXCESSIVE BONUSES BY TARP RECIPIENTS.

(a) In General- If, before the date of enactment of this Act, the preferred stock of a financial institution was purchased by the Government using funds provided under the Troubled Asset Relief Program established pursuant to the Emergency Economic Stabilization Act of 2008, then, notwithstanding any otherwise applicable restriction on the redeemability of such preferred stock, such financial institution shall redeem an amount of such preferred stock equal to the aggregate amount of all excessive bonuses paid or payable to all covered individuals.

(b) Timing- Each financial institution described in subsection (a) shall comply with the requirements of subsection (a)--

(1) not later than 120 days after the date of enactment of this Act, with respect to excessive bonuses (or portions thereof) paid before the date of enactment of this Act; and

(2) not later than the day before an excessive bonus (or portion thereof) is paid, with respect to any excessive bonus (or portion thereof) paid on or after the date of enactment of this Act.

(c) Definitions- As used in this section, the following definitions shall apply:

(1) EXCESSIVE BONUS-

(A) IN GENERAL- The term `excessive bonus' means the portion of the applicable bonus payments made to a covered individual in excess of $100,000.

(B) APPLICABLE BONUS PAYMENTS-

(i) IN GENERAL- The term `applicable bonus payment' means any bonus payment to a covered individual--

(I) which is paid or payable by reason of services performed by such individual in a taxable year of the financial institution (or any member of a controlled group described in subparagraph (D)) ending in 2008, and

(II) the amount of which was first communicated to such individual during the period beginning on January 1, 2008, and ending January 31, 2009, or was based on a resolution of the board of directors of such institution that was adopted before the end of such taxable year.

(ii) CERTAIN PAYMENTS AND CONDITIONS DISREGARDED- In determining whether a bonus payment is described in clause (i)(I)--

(I) a bonus payment that relates to services performed in any taxable year before the taxable year described in such clause and that is wholly or partially contingent on the performance of services in the taxable year so described shall be disregarded, and

(II) any condition on a bonus payment for services performed in the taxable year so described that the employee perform services in taxable years after the taxable year so described shall be disregarded.

(C) BONUS PAYMENT- The term `bonus payment' means any payment which--

(i) is a discretionary payment to a covered individual by a financial institution (or any member of a controlled group described in subparagraph (D)) for services rendered,

(ii) is in addition to any amount payable to such individual for services performed by such individual at a regular hourly, daily, weekly, monthly, or similar periodic rate, and

(iii) is paid or payable in cash or other property other than--

(I) stock in such institution or member, or

(II) an interest in a troubled asset (within the meaning of the Emergency Economic Stabilization Act of 2008) held directly or indirectly by such institution or member.

Such term does not include payments to an employee as commissions, welfare and fringe benefits, or expense reimbursements.

(D) COVERED INDIVIDUAL- The term `covered individual' means, with respect to any financial institution, any director or officer or other employee of such financial institution or of any member of a controlled group of corporations (within the meaning of section 52(a) of the Internal Revenue Code of 1986) that includes such financial institution.

(2) FINANCIAL INSTITUTION- The term `financial institution' has the same meaning as in section 3 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5252).

(d) Excise Tax on TARP Companies That Fail To Redeem Certain Securities From United States-

(1) IN GENERAL- Chapter 46 of the Internal Revenue Code of 1986 (relating to excise tax on golden parachute payments) is amended by adding at the end the following new section:

`SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES FROM UNITED STATES.

`(a) Imposition of Tax- There is hereby imposed a tax on any financial institution which--

`(1) is required to redeem an amount of its preferred stock from the United States pursuant to section 1903(a) of the American Recovery and Reinvestment Tax Act of 2009, and

`(2) fails to redeem all or any portion of such amount within the period prescribed for such redemption.

`(b) Amount of Tax- The amount of the tax imposed by subsection (a) shall be equal to 35 percent of the amount which the financial institution failed to redeem within the time prescribed under 1903(b) of the American Recovery and Reinvestment Tax Act of 2009.

`(c) Administrative Provisions-

`(1) IN GENERAL- For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A for the taxable year in which a deduction is allowed for any excessive bonus with respect to which the redemption described in subsection (a)(1) is required to be made.

`(2) EXTENSION OF TIME- The due date for payment of tax imposed by this section shall in no event be earlier than the 150th day following the date of the enactment of this section.'.

(2) CONFORMING AMENDMENTS-

(A) The heading for chapter 46 of such Code are amended to read as follows:

`Chapter 46-Taxes on Certain Excessive Remuneration

`Sec. 4999. Golden parachute payments.

`Sec. 4999A. Failure to redeem certain securities from United States.'.

(B) The item relating to chapter 46 in the table of chapters for subtitle D of such Code is amended to read as follows:

`Chapter 46. Taxes on excessive remuneration.'.

(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to failures described in section 4999A(a)(2) of the Internal Revenue Code of 1986 occurring after the date of the enactment of this Act.

[Woody]

The bankers have screwed up their banks and the economy in general. If the government is giving them large amounts of tax payers money.I guess they can insist the money isn't spent on salaries .
If you that great at your job how come the tax payer is pulling you out of the mire ?
I assume a bonus is given on top of a salary if you do a good job?
Having the tax payer bail you out means you were not that good so no bonus .If you get the bonus what ever you do thats just pay maybe the irs should have a word?

[fjer]

The biggest problem I see with this is that it will make it very difficult for the companies to hire new executives with the experience and talent to fix the companies.

[HairyEyeball]

And the biggest problem I see is that every time a socialist nation tried this, it failed - and tanked their economy in the bargain.

Let this be a lesson to all of you: Next time, instead of trying to start a business, start a government.

[Murray B]

Originally Posted by 03_SHOOTER

...there's no provision anywhere in the Constitution for the government to tell private business how much they can pay their people either.

Hitler's salary was set to be the same as a street car conductor for propaganda purposes. He was one of the richest people in Germany and his total compensation was huge. Salary propaganda works because, for most people, salary and compensation are the same.

Even without stock options and with a salary of $1 the total compensation for one of these fellows can still be much more than a dollar.

[O.O.O.]

Just curious........

How much compensation does the head of the postal service get in compensation each year?

And how much in debt does that department run each year?