Chicago considers limits on banker pay for banks doing municipal deals
From Reuters:
CHICAGO, Oct 8 (Reuters) - Bankers wanting to do business with the city of Chicago would have to severely limit pay packages for top executives whose companies are participating in a federal bailout, under a proposed ordinance introduced in the City Council on Wednesday.
Under the proposal, annual executive compensation, including bonuses, would have to be capped at $400,000 in order for Chicago to tap a financial institution to serve as a bond underwriter or municipal depository.
"In short, the city of Chicago is not going to roll out the welcome mat for any financial institution that accepts money from this unprecedented federal bailout, yet turns around and hands out huge amounts of money to its executives," Alderman Edward Burke, one of the ordinance's sponsors, said in a statement.
The proposal would cover any financial institution and its affiliates whose troubled assets are purchased by the U.S. government as part of the recently passed $700 billion financial bailout plan.
The measure would also prohibit the city treasurer from purchasing securities issued by institutions that do not adhere to the cap.
Talk about shooting yourself in the foot.
*applause
While it may stall some Benjamins going into Chicago, that's quite the step for a major city in the US. We'll see if it sets a precedent for similar moves...
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