Obama to unveil executive pay caps
WASHINGTON -- President Barack Obama plans to unveil a series of new pay curbs Wednesday, including strict limits on executive salaries, the latest salvo from Washington aimed at reining in financial firms receiving federal assistance.
Among the new restrictions being considered is a $500,000 cap on salaries for executives at companies that receive a substantial amount of government aid, according to a person familiar with the matter. Executives would be able to get additional compensation in the form of restricted stock or other compensation that is tied to the long-term health of the company.
The Obama administration also plans to ban chief executives of such firms from receiving severance payments. And it is expected to require that firms receiving taxpayer money give shareholders more say in how top executives are compensated, according to people familiar with the administration's plans.
The potential changes amount to one of the most aggressive efforts to limit executive pay, a movement that has been growing in strength in recent years but hadn't made much headway until the financial collapse.
http://online.wsj.com/article/SB12337158778354655…
Only a matter of time before the MD & VP caps...
Is this only for American banks or also for IB's that have offices in the US, such as DB, UBS, CS, etc. ?
Not so easy to say since he hasn't announced it yet..
but at this point, it seems to be intended for the banks that take part in future US gov't programs... so I doubt UBS/CS/DB/Barclays will have to worry unless their US subsidies take money
It's targeted towards American banks.
The European banks are not participating in TARP.
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