The Corner

Obama, TARP & Exec Pay

My main fear is that executives running financial institutions will refuse to participate in the government program, even though it makes sense for their companies, because they don’t wish to take a pay cut.  I also worry that those that do participate will find some other way to compensate themselves that may be even worse than what they are doing now.  It’s worth remembering that the big increase in stock options came after Bill Clinton restricted the deduction for regular pay to $1 million per year in 1993.


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