Posts Tagged ‘Bailout’

US considering overhaul of financial sector pay practices

Wednesday, May 13th, 2009

News Story:

The Obama administration is in discussions concerning initiatives to change how financial-services corporations compensate their executives.  This would even affect corporations who were not recipients of federal bailout money.

Commentary:

I have very mixed feelings on this subject.  On one hand it is obscene how large the divide between a typical corporate employee’s pay is compared with a typical corporate executive.  This is especially true in the financial sector.  What really merits being paid hundreds of millions of dollars?  And this in a time when banks and financial corporations were failing miserably due to such a long period of very questionable lending practices…..and they get rewarded with more money in a year than most people will come close to seeing in an entire lifetime?

My concern with this though, is that government dictating pay scales to the financial sector just opens the door a bit wider to total government control of the lives of US citizens.  Where does the line get drawn?  Are we truly a capitalist society anymore when the government is taking such strong control over the details of how corporations function in the US?  Just one step closer to the socialist society that Obama would like to create.