If they limit pay, how does a company attract competent people to clean up the mess and take it in new directions? New people aren't going to give their work away for pennies on the dollar...
Uh, as long as Republocrats get their bribes, they certainly don’t want any “new direction” or “clean up” of failed companies. That’s the whole pont of bailouts.
“If they limit pay, how does a company attract competent people to clean up the mess and take it in new directions? New people aren’t going to give their work away for pennies on the dollar... “
If you are tens or even hundreds of billions of dollars in the hole, you give up the right to attract top talent with exorbitant salaries. They take the bailout loans with the conditions and do the best with what they get or they file Chapter 7 and liquidate...it’s that simple.
If the top execs making 500k a year turn the company around and regain profitability, they can then (after paying the tax money back) offer incentives as they please based on their good performance. They can’t do this beforehand.
If I am a desperate small business owner with a track record of years of mismanagement and huge losses, no bank in their right mind would just give me a huge loan with zero questions asked. No venture capital firm would dare do that either. They would impose serious restrictions and most certainly would impose salary parameters as protection on their investments. The tax payers should expect the same.