Obama To Announce Compensation Limits
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Later today, President Barack Obama will announce limits on executive compensation for those companies receiving "exceptional" government assistance.
The restrictions will include a $500,000 pay cap for top executives. Any additional compensation will have to come in the form of restricted stock that won't vest until the government is paid back. There will also be a mandate for greater transparency on the use of corporate jets, office renovation and holiday parties.
Obama is reacting to the public backlash against companies that paid out lavish bonuses despite receiving government aid, including AIG (NYSE: AIG), Citigroup (NYSE: C), Merrill Lynch -which is now Bank of America (NYSE: BAC)-, and others.
On CNN last night Obama said, "People are still getting huge bonuses despite the fact that they're getting taxpayer money, which I think infuriates the public."
Treasury Secretary Timothy Geitner is expected to announces the pay limits at 11AM today.
StreetInsider.com recently discussed how President Barack Obama has targeted Wall Street in an article Obama HATES Wall Street.
The restrictions will include a $500,000 pay cap for top executives. Any additional compensation will have to come in the form of restricted stock that won't vest until the government is paid back. There will also be a mandate for greater transparency on the use of corporate jets, office renovation and holiday parties.
Obama is reacting to the public backlash against companies that paid out lavish bonuses despite receiving government aid, including AIG (NYSE: AIG), Citigroup (NYSE: C), Merrill Lynch -which is now Bank of America (NYSE: BAC)-, and others.
On CNN last night Obama said, "People are still getting huge bonuses despite the fact that they're getting taxpayer money, which I think infuriates the public."
Treasury Secretary Timothy Geitner is expected to announces the pay limits at 11AM today.
StreetInsider.com recently discussed how President Barack Obama has targeted Wall Street in an article Obama HATES Wall Street.
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