The administration will reportedly not impose limits on pay to corporate executives.
Wired PR News – The Obama administration reportedly has no plans to cap the pay of corporate executives. As reported by the Associated Press (AP), despite the belief that excessive compensation has played a significant role in the current financial crisis, such limits will not be imposed. However, restrictions on financial compensation for companies receiving bailout funding will be put into place.
As noted by the AP, the announcement was made by Treasury Secretary Timothy Geithner, who also stated that the administration will work on legislation to give shareholders a vote on what pay packages for executives will be, however, boards of directors would not be bound by the results. Such initiatives are expected to promote the practice of rewarding performance of executives in the long-term as opposed to the short-term.
