Obama to cap pay of bailout execs
TEXT OF STORY
Renita Jablonski: You take bailout money, you may take a hit in your paycheck. President Barack Obama will drive that idea home in a speech in about an hour and a half, or I should say about an hour. Marketplace’s Nancy Marshall Genzer reports.
Nancy Marshall Genzer: President Obama wants to cap executive pay at $500,000 a year. Now, that may seem like a lot of money. But for a corporate big wig, it’s chump change. But don’t expect them to be out on street. Companies will have some leeway to supplement CEO salaries. Walter Gerasimowicz of Meditron Asset Management says corporations may bend whatever rules they’re given.
WALTER GERASIMOWICZ: They will attempt to get around them with other forms of bonus plan or compensation that has not been included in the restrictions.
Some corporate types have said the new pay rules will discourage companies from accepting bailout money. But Gerasimowicz says many firms are hurting, and they’ll have no choice.
In Washington, I’m Nancy Marshall Genzer for Marketplace.
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