[ReverseEngineer]

There are rumours flying about that in the banks and Insurance companies and Automakers recently Bailed out by the Goobermint, Executive Compensation will be Capped at $400,000.

One Democratic senator on Friday even proposed a law that would prevent bank executives from making more than $400,000 a year while they receive government financial support.

Reuters

What self respecting Pigman would work for Chump Change like that? You would run out of money for $5000 Hookers by the end of Q2.

Given the pay packages many of these Pigmen have been pulling in the $10M/year range, this amounts to a 96% salary cut. The International Brotherhood of Pigmen will Strike!

Seriously though, I don't see why we would pay even $400K to Incompetant Nincompoops who are just losing money faster than an inebriated salesman at a Vegas Convention. If they pay you to lose money, what incentive is there to MAKE money? Anyhow, the IBofP will no doubt payoff said Democratic Senator who suggested this idea, reminding him that on $400K/year salary he no longer will be able to afford $1M Campaign Contributions. Goobermints as corrupt as ours has become are self perpetuating organisms, a Cancer on society. The only way to get rid of the cancer is to cut it out entirely and hope the body can then heal itself.

Reverse Engineer

[cipi604]

Of course you realize... this means war!

[xerces]

There are rumours flying about that in the banks and Insurance companies and Automakers recently Bailed out by the Goobermint, Executive Compensation will be Capped at $400,000.

One Democratic senator on Friday even proposed a law that would prevent bank executives from making more than $400,000 a year while they receive government financial support.

Reuters

What self respecting Pigman would work for Chump Change like that? You would run out of money for $5000 Hookers by the end of Q2.

Given the pay packages many of these Pigmen have been pulling in the $10M/year range, this amounts to a 96% salary cut. The International Brotherhood of Pigmen will Strike!

Seriously though, I don't see why we would pay even $400K to Incompetant Nincompoops who are just losing money faster than an inebriated salesman at a Vegas Convention. If they pay you to lose money, what incentive is there to MAKE money? Anyhow, the IBofP will no doubt payoff said Democratic Senator who suggested this idea, reminding him that on $400K/year salary he no longer will be able to afford $1M Campaign Contributions. Goobermints as corrupt as ours has become are self perpetuating organisms, a Cancer on society. The only way to get rid of the cancer is to cut it out entirely and hope the body can then heal itself.

Reverse Engineer

$10M/year range is for mid level executives like Managing Directors. Any C-Level execs of major banks/Hedge funds would be rewarded closer to 100 million a year. This move is extremely unwise since it would drive out the best executive talent into non government controlled economic sectors. For example, waves of laid off IBanking Analysts and associates are all trying to migrate into the Law, Consulting, Marketing and Technology sectors right now. We can expect their bosses to do the same after this government edict passes.

[ReverseEngineer]

$10M/year range is for mid level executives like Managing Directors. Any C-Level execs of major banks/Hedge funds would be rewarded closer to 100 million a year. This move is extremely unwise since it would drive out the best talent into non government controlled economic sector.

What "talent" exactly is it that you are referring to here? The talent to lose billions and make a mess of the economy? LOL.

And just what "Private Sector" jobs would these talented individuals remove themselves to now? Every freaking company of any size at all is getting Goobermint Bailouts, there no longer EXISTS a "private sector"!

If these geniuses can go out and start a new company and make $100M, please feel FREE, be my GUEST! Good Luck! If this was so easy for talented Pigmen, just why is it they don't do that instead of offing themselves when their Hedge Funds go Belly Up?

Reverse Engineer

[vision-master]

$10M/year range is for mid level executives like Managing Directors. Any C-Level execs of major banks/Hedge funds would be rewarded closer to 100 million a year. This move is extremely unwise since it would drive out the best executive talent into non government controlled economic sectors. For example, waves of laid off IBanking Analysts and associates are all trying to migrate into the Law, Consulting, Marketing and Technology sectors right now. We can expect their bosses to do the same after this government edict passes.

Don't let the door hit you in the ass on the way out.

Executive talent = how can I make as much money for myself, screw everyone else!

[basil_hayden]

This move is extremely unwise since it would drive out the best executive talent into non government controlled economic sectors.

Good! Maybe they can get a nice $10 million per year job in Bangladesh or something...in reality these clowns have no where else to go.

I thought for awhile that as the US tanked, somehow other countries wouldn't, such as China, and the US could rid itself of parasitic corporations and their management simply by being a crappier market than China. But no, the US tanks and it all tanks, so the US is still the best place to be even during a crisis.

[xerces]

$10M/year range is for mid level executives like Managing Directors. Any C-Level execs of major banks/Hedge funds would be rewarded closer to 100 million a year. This move is extremely unwise since it would drive out the best talent into non government controlled economic sector.

What "talent" exactly is it that you are referring to here? The talent to lose billions and make a mess of the economy? LOL.

And just what "Private Sector" jobs would these talented individuals remove themselves to now? Every freaking company of any size at all is getting Goobermint Bailouts, there no longer EXISTS a "private sector"!

If these geniuses can go out and start a new company and make $100M, please feel FREE, be my GUEST! Good Luck! If this was so easy for talented Pigmen, just why is it they don't do that instead of offing themselves when their Hedge Funds go Belly Up?

Reverse Engineer

Perhaps I should have ended my post with a </sarcasm> tag to be more clear. There are still profitable sectors outside of Financial and Automotive that are still not on the government dole. To name several:

Consulting
Law
Marketing/Product Development
Energy (Conventional+Alternative))
Technology

As I have mentioned in another post, the operating assumptions of the Financial services sector is messed up right now. Their executive "talent" would destabilize the healthy sectors of the broader economy. So for example, in my field(consulting), the profit growth is tied purely to the organic growth of our clients. As such if our annual profit growth is 5% a year, it's a decent year. If it's 8% or even 10%, it's incredibly good growth that everyone knows cannot be maintained over the long term. This is a lesson that most other professional sectors understand (tech and consulting even more than the others due to the IT bubble)

But Ex-Finance guys would look at these numbers and scoff. They are used to growth rates of 50% a year. Such growth can be achieved for a few years only if you rig the entire system. This of course causes bubbles and crashes as we have seen in the past. From the lower-level Financial people(mostly VPs) who have transitioned to consulting, I've seen a lot of complaining and fairly outrageous business pitches to clients to secure bigger bonuses.

Now if their bosses (exec-directors, Managing Directors, C-Level people) all transitioned into other sectors such as consulting(due to a pay cap). Then the overall direction of these sectors would be skewed towards unsustainable short term profit growth. It would literally destroy several still-healthy sectors of the economy. Thus, this move is unwise.

[jamest]

While I'm not certain that the proposed cap is the remedy, it certainly is true that reform of the compensation system is needed, and the people in the financial services industry won't impose it on themselves.

You don't see this type of compensation in other major financial centers in the world. This is a phenomenon unique to the American culture of excess, and it's intolerable.

[lawnchair]

Salary cap? No.

A return to FDR/Truman/Eisenhower/JFK's 90%+ marginal tax rates on income over what would be a million today? Yes.

That kind of income tax seriously encourages you to build a company with which you can draw a steady mid-six-figure salary for twenty-five years. Not "rape the system for a $400 million bonus, then golden parachute out".

[JoeW]

waves of laid off IBanking Analysts and associates are all trying to migrate into the Law, Consulting, Marketing and Technology sectors right now. We can expect their bosses to do the same after this government edict passes.

Who cares?

[Novus]

$10M/year range is for mid level executives like Managing Directors. Any C-Level execs of major banks/Hedge funds would be rewarded closer to 100 million a year. This move is extremely unwise since it would drive out the best talent into non government controlled economic sector.

What "talent" exactly is it that you are referring to here? The talent to lose billions and make a mess of the economy? LOL.

When "talent" means how much money they can steal they can shove their "talent" up their arse and off them selves. We are living in a world where execs are making $100 million yet they go and steal another couple billion off the top because the $100 million was not good enough for the pig-men. These execs need to just die and remove themselves from the gene pool.

[ReverseEngineer]

Consulting
Law
Marketing/Product Development
Energy (Conventional+Alternative))
Technology

Take a glance at this list. This is all of January and beginning of February. Every one of those professions you list there is on this list multiple times.
Schools are laying off.
Hospitals are laying off.
Law firms are laying off.
Conventional energy is laying off BIG time.
Technology firms are laying off.

Every type of job you can think of is represented on this list, and its getting worse every day. There is nowhere to hide anymore.

Exactly. The argument Xerxes makes is an anachronism. Its an argument from a world which no longer exists. Jobs with outrageous paydays don't exist in companies that aren't making profits. Bankruptcy lawyers might be the only listing you can think of as a growth industry, except their clients can't afford to pay them anything.

The only way Pigmen will continue to make millions is in Funny Money. It either gets taxed out or its capped, not much difference there.

Reverse Engineer

[Daphne64]

FYI the senator is Claire McCaskill of Missouri.

http://www.kansascity.com/637/story/1010370.html

[jasonraymondson]

Ideally there should be a cap.

Ideally it should also be to each according to need and from each according to ability or some crap.

If there is a minimum wage there should be a maximum wage, everything in excesss should go to insuring the growth of the country, hospital care for all, education, utilities, roads...

We should do our best and be willing to sacrifice hummers and giant sale boats for the sake of each other and humanity.

An organization should be created for the sole purpose of determining the most important issues (roads, bridges, power grid...) and we should be repairing those have fallen in disarray, and then continue on.

We will never do this though, because humans are greedy, selflish asshats.

[ReverseEngineer]

We will never do this though, because humans are greedy, selflish asshats.

MOST humans can be defined as such at the MOMENT, however Natural Selection is good at getting rid of counterproductive behavior. Give it time, some will survive. Those who cooperate and give of themselves.

The Meek Shall Inherit the Earth.

Reverse Engineer

[jasonraymondson]

We will never do this though, because humans are greedy, selflish asshats.

MOST humans can be defined as such at the MOMENT, however Natural Selection is good at getting rid of counterproductive behavior. Give it time, some will survive. Those who cooperate and give of themselves.

The Meek Shall Inherit the Earth.

Reverse Engineer

'

hope your right buddy, but I think the greedy will blow us all to kingdom come before they give up their toys.

[Denny]

It is interesting to see history repeating itself in this regard. See "Historical Trends in Executive Compensation", a paper presented at the University of Chicago.

"Revelations regarding executive pay first occurred during World War I, when railroad corporations became managed by the federal government and the exorbitant salaries of railroad officers were exposed. Public scrutiny intensified during the 1920s, when the compensation of railroad and banking executives were published in the popular press. By the early 1930s, the controversy surrounding the level of pay had extended to executives in all businesses. As the economy slipped into the Depression, the nation became increasingly troubled by the “lavish stipends and bonuses” accruing to the managers of large public corporations."

It showed, in real terms (measured in year 2000 dollar buying power), the typical Dow Jones index type company executive compensation jumped six-fold between the 1950's and today. From a median $840K per year to $4.25 million per year.

[nobodypanic]

i have a better idea... just 'cap' every one of them, with lead.

[sealteam1]

glade to hear it. America has no more great leaders woth 400k . They are all re hashed white boys with sudo college educations that smoke dope. Lets all round up these yuppies and set um on fire.

There are rumours flying about that in the banks and Insurance companies and Automakers recently Bailed out by the Goobermint, Executive Compensation will be Capped at $400,000.

One Democratic senator on Friday even proposed a law that would prevent bank executives from making more than $400,000 a year while they receive government financial support.

Reuters

What self respecting Pigman would work for Chump Change like that? You would run out of money for $5000 Hookers by the end of Q2.

Given the pay packages many of these Pigmen have been pulling in the $10M/year range, this amounts to a 96% salary cut. The International Brotherhood of Pigmen will Strike!

Seriously though, I don't see why we would pay even $400K to Incompetant Nincompoops who are just losing money faster than an inebriated salesman at a Vegas Convention. If they pay you to lose money, what incentive is there to MAKE money? Anyhow, the IBofP will no doubt payoff said Democratic Senator who suggested this idea, reminding him that on $400K/year salary he no longer will be able to afford $1M Campaign Contributions. Goobermints as corrupt as ours has become are self perpetuating organisms, a Cancer on society. The only way to get rid of the cancer is to cut it out entirely and hope the body can then heal itself.

Reverse Engineer

[Ludi]

sudo

Let's hear it for education!