Obama pushes bill to rein in lavish CEO pay

Reuters ^ | 4/11/08 | Caren Bohan

[traviskicks]

INDIANAPOLIS (Reuters) - Democratic presidential candidate Barack Obama will push on Friday for passage of a bill to put the huge pay packages of some U.S. corporate executives under greater scrutiny.

The Illinois senator has introduced "say-on-pay" legislation that would give investors more of a voice in setting executive compensation packages.

"We've seen what happens when CEOs are paid for doing a job no matter how bad a job they're doing. We can't afford to postpone reform any longer," Obama said in prepared remarks for delivery later on Friday.

"That's why Washington needs to act immediately to pass this legislation."

Amid fears the U.S. economy may be in recession, many U.S. voters are anxious about a weakening job market, the mortgage crisis and higher gasoline prices.

At the same time, many are also expressing outrage over big pay packages given to executives of some of the companies at the center of the financial and mortgage crises, such as Bear Stearns Cos Inc and Countrywide Financial Corp.

Obama is vying with Sen. Hillary Clinton of New York for the Democratic nomination to run for president. The winner will face Republican Sen. John McCain in November's election.

Clinton supports the "say-on-pay" bill.

In his home state of Arizona last week, McCain added his voice to those expressing concern about the vast compensation earned by executives when their firms performed disastrously and most shareholders lost millions of dollars.

"I think it is outrageous when someone who is the head of Bear Stearns cashes in millions and millions of dollars in stocks," McCain told reporters on Saturday.

"I think it is unconscionable when the guy who is the head of Countrywide and his co-conspirators make huge amounts of money when Americans face the threat of losing their homes."

[traviskicks]

I am rich and proud of every penny I own. I made my money by my own effort, in free exchange and through the voluntary consent of every man I dealt with — the voluntary consent of those who employed me when I started, the voluntary consent of those who work for me now, the voluntary consent of those who buy my product. I shall answer all the questions you are afraid to ask me openly. Do I wish to pay my workers more than their services are worth to me? I do not. Do I wish to sell my product for less than my customers are willing to pay me? I do not. Do I wish to sell it at a loss or give it away? I do not. If this is evil, do whatever you please about me, according to whatever standards you hold. These are mine. I am earning my own living, as every honest man must. I refuse to accept as guilt the fact of my own existence and the fact that I must work in order to support it. I refuse to accept as guilt the fact that I am able to do it and do it well. I refuse to accept as guilt the fact that I am able to do it better than most people — the fact that my work is of greater value than the work of my neighbours and that more men are willing to pay me. I refuse to apologize for my ability — I refuse to apologize for my success — I refuse to apologize for my money.
- Ayn Rand

[traviskicks]

McCain added his voice to those expressing concern about the vast compensation earned by executives...

Libertarian ping! To be added or removed freepmail me or post a message here.

[AmericanHunter]

Good grief, some people believe that government should have control over everything.

Sad, sad choices this year for POTUS.

[darkangel82]

Communists.

[Arthur McGowan]

Does the bill include funding for the Labor Camps and Re-Education Camps for the CEOs and members of the corporate boards who prove recalcitrant?

[Eurale]

Taking a leak on the Constitution, presidential candidates vie to remove all incentives to work hard and prosper. Coming next, Congress will move to place a cap on all salaries for all American workers, except those in unions and trial lawyers.

[Eric in the Ozarks]

Mind your own biz, Obama.

[Holicheese]

I think we need to look into Hollywood exec and celebrity salaries.
Why should Tom Cruise make $20 million for a lousy movie when the key grip only makes $9.75/hour?
What about the Best Boy? I have no idea what he does but he is under paid.

[ConservaTexan]

The People’s Republic of America, coming to a country near you!

[Army Air Corps]

Does the bill include the compensation of, for example, someone who serves on a hospital board and earns over $300k...ya know, like Obama’s wife.

Obambi, take your Marxism and cram it.

[NeoCaveman]

"We've seen what happens when CEOs are paid for doing a job no matter how bad a job they're doing. We can't afford to postpone reform any longer," Obama said in prepared remarks for delivery later on Friday.

I could say the same thing about Senators.

[Arthur McGowan]

BTW: Why doesn’t some Republican demand such funding for a Gulag be inserted into this bill?

[monocle]

And what does Obama have to say about the Clintons’ pimp fees?

[unkus]

Who is John Gault? Coming soon to the USA.

[Son House]

Limiting someone else’s pay will lead to a limit to your pay. I suggest Senators progressive so the millionaires get no pay, to a maximum be $60,000 per year, and cap their staff at a total of $30,000 per year.

[Oldexpat]

The officers of non-profits should face even stiffer limits.
Why in the world is UofC Hospital paying Michelle Osbama 300k plus? Now that is outrageous.

[Renkluaf]

I have a solution - if you don’t like what a particular CEO makes, don’t buy the stock. And we won’t need a new government agency to oversee that either.

[RightWhale]

Seems like somebody wants to extend the domain of FedGov a little farther into the domain of State Gov’t where Corporations are actually created. FedGov needs to disengage for a few decades.

[Eurale]

“Why in the world is UofC Hospital paying Michelle Osbama 300k plus? Now that is outrageous.”

It’s ca;;ed graft.

[bill1952]

first limit the pay of all parasites like lawyers, insurance agents, brokers, and politicians...

Then claim your socialist moral high ground.

Beat it, Obama.