Treasury Pulls Purse Strings On Bailed Out Companies
The U.S. “Pay Czar” is a title that should strike terror in those still foolish enough to think the government is here to help, especially those working at companies that received bailout money. What, you didn’t think there’d be strings attached?
The U.S. pay czar will slash compensation for the 25 highest-paid employees at seven firms receiving large sums of government aid and demand a host of corporate-governance changes at those firms, according to people familiar with the matter.
Kenneth Feinberg, the Treasury Department’s special master for compensation, will lower total compensation for 175 employees by an average of 50%, these people said. As expected, the biggest cut will be to salaries, which will drop 90% on average.
Oh, you don’t work at one of those companies? You run a small business, so you’ve got nothing to worry about? Riiiiiight. Guess who the government wants to help next?
What’s next? Anti-dog-eat-dog legislation?
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This ridiculous action abrogates contracts between the executives and the financial institutions which is flagrantly unconstitutional.
But it will stand unless and until one or more of the institutions finds its spine and files a court challenge.
This administration’s disregard for the constitution that it swore to protect and defend is absolutely breathtaking.
Not just those who took the government money. It looks as though they want to set salaries for any entity subject to regulation:
http://www.federalreserve.gov/.....91022a.htm