Bye Bye Banks and Wall Street

[Betty]

Little news snippet says Obama is limiting CEO salaries of those companies in dire straits to $500k. I wonder if that includes bonuses.

[Moonliner]

Originally Posted by Betty

Little news snippet says Obama is limiting CEO salaries of those companies in dire straits to $500k. I wonder if that includes bonuses.

Yes. It includes all types of benefits except stock options. Stock options may be given in any amount but they cannot be traded until the amount of the loan has been payed back to the US Government.

However, it should be noted there are a few stipulations...

• This only applies to corporations that received extraordinary loans. Of the 300 or so corporations in the first go round, only three would qualify (AIG, Citi and Bank of America...)

• This only applies going forward. It does NOT cover loans already made.

• Corporations have the option to opt-out of the plan, simply by notifying their shareholders. The shareholders then get to vote on the issue but the results are non binding.

• As far as I can tell, there is no stiplation on what use any money saved from this plan would be used for. In theory it could be used to pay back the loan but it could just as eaily go for a corporate retreat to Tahiti.