No More Golden Parachutes

In a bold move today, US president Barack Obama announced that he will limit executive pay to $500,000 if the companies will seek bailout using the taxpayer’s money.

In a CNN article ;

Pledging to take “the air out of golden parachutes,” President Obama announced Wednesday that executives of companies receiving federal bailout money will have their pay capped at $500,000 under a revised financial compensation plan.

Last year’s “shameful” handout of $18 billion in Wall Street bonuses “is exactly the kind of disregard for the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else,” Obama said to reporters at the White House.

I consider this move to be very bold and I know that it points to the proper direction. Executive pay should be limited and instead the money being used to benefit only the few, why not use it to improve the company as well as additional benefits for the other employees. And if the companies seek bailout, then they should be able to make beneficial improvements to the way they run their corporations.

Enough of the greed among the corporate elite. Anyways, they were not hired just to lay there corporate assess and do nothing while their company falls down. They are hired for that executive position because they have the higher capacity on how to run the company – PROPERLY AND IN A NON-GREEDY WAY.

I hope this thing keeps up. And I hope President Obama will fully implement this. Keep it up President Obama!