I don't believe I heard him suggesting a solution that involved the federal government.
But shortly after the figures were released President George W. Bush took aim at the large salaries being awarded to company executives, saying they should be awarded for performance and performance alone. The comments, made in a speech to Wall Street bosses, matched those made in a White House report on the matter. "Government should not decide compensation for America's corporate executives," the report said. "But the salaries and bonuses of chief executives should be based on their success at improving their companies and building value for their shareholders.".
I agree, but the Board needs encouragement, particularly in the unrealistic climate that has been established. I don't understand why boards feel the need to give insane amounts of money to people who are doing a bad job, for example; it would be one thing if the swollen salaries were performance based, but I think unfortunately the boards often are not representing the shareholders very well. Maybe a little outside encouragement will give them the courage to buck the trend and tie the salary to successful performance.
"However, this is a problem for the companie's Board of Directors, not the Federal Government."
Which is EXACTLY what Bush said. People would know that if they weren't so bust taking the liberal media as the honest to goodness end-all beart all truth without even a full quote from Bush.
FReepers are as quick as DUers to spout what the liberal media says if it fits their prejudices. FR has jumped the shark.
"Some CEOs get paid waaaaay too much, even if they do bad work.
I agree. However, this is a problem for the companie's Board of Directors, not the Federal Government."
Not really true.
We live in a democracy.
Congress has the power to impose taxes, high taxes on high incomes, and it has shown itself more than willing to do so in the past.
If the top tier get too far out in front of everybody else and start looking like feudal lords - especially when lots of other people are not feeling very secure about their own futures, the pressure starts to well up from below to forcibly redistribute using the tax code.
There's no point bleeding out the eyes over the morality or immorality of that all - it's our system, and we've been through cycles of it.
Bush is REMINDING these top execs of that. Republicans no longer control Congress. They cannot PROTECT the upper end. So, the executive suite and the boardroom will either police themselves and self-impose limits on huge executive pay packages OR they won't, and people will get madder and madder, and Congress will impose high top-end taxes that deplete those high pay packages in a hurry. Congress doesn't even really need to DO anything - it can just let the current tax cuts expire (and the President can't veto THAT).
So, Bush is giving them a friendly warning. HE'S not going to raise their taxes, and raising taxes would probably not be good for the overall growth of the economy. BUT people are getting madder and madder, and Democrats have the majority. So, the CEO and Boards can either self-police and ratchet down the blowout pay packages, or they can expect the giraffes of government to start looking over the wall and messing around with their income streams, taking it in taxes, perhaps passing laws that grant new legal causes of action for "abusive" pay packages, etc.
Bush is doing these guys a favor. We still live in a Democracy, and the pro-business class Republicans are out of power. So, the business class can trim its sails a bit on its own, or it can continue under full sail and watch Congress - driven from the people - to hoist the Jolly Roger.
What isn't on the cards is CEO packages continuing to zoom out of sight and Congress doing nothing. So, self-regulation or the IRS, pick your poison.