I understand where you're coming from but the government shouldn't be allowed to determine limits on executive compensation for a private sector company.
Furthermore, the actions of AIG were being regulated but, once again, a Federal agency let political capital trump the COnstitutional requirement to "Promote the General Welfare". See this article: Wall Street Journal
Tucsonican, the Govt SHOULD be able to set limits on comp when using our money (notice I didn’t say Govt $). But in the contract between the Govt and AIG it should be clearly stated that they have this ability.
If AIG says no, then the 2 can negotiate.
IMO, this is all political theater on both the Govt side and the Private Sector. AIG, GS, JPMorgan etc are all in bed with Congressional powers at be. Faux outrage is sickening.
I just get bent out of shape when posters here on FR are all too willing to make excuses for Wall St., as if it is part of being a conservative. No different than Dems who will never blame liberal Govt. no matter if facts or voting records expose them.