Originally Posted By: Matter-eater Man
 Quote:
Obama unveils executive pay cap

US President Barack Obama has announced a $500,000 (£355,000) limit on executive pay at US firms that need substantial fresh government aid.

The move follows widespread public anger over the levels of pay on Wall Street, but is not expected to be applied retrospectively.

President Obama said it was "shameful" that top bankers had awarded themselves giant bonuses last year.

He added that taxpayers should not be "subsidizing excessive compensation".
...

BBC


http://uk.reuters.com/article/reutersComService_2_MOLT/idUKTRE5152DQ20090206

 Quote:
President Barack Obama's crackdown on Wall Street pay contains loopholes, and may have limited impact in restraining compensation, the Wall Street Journal said, citing executive-pay consultants and management attorneys.

Some compensation professionals are already pointing out potential holes in the rules, including tactics such as changing executives' titles or rearranging pay packages, the paper said.

Obama set a $500,000 annual cap on executive pay and imposed other restrictions on companies that receive money from the Treasury Department's Troubled Asset Relief Program, or TARP.

The Journal said just as past attempts by the government to restrict executive pay largely backfired, the new curbs may also have unintended consequences, citing its sources.

Some critics suggested that the restrictions be retroactively applied to companies that already have received federal bailout cash, the paper said.

The critics noted that the most stringent restrictions likely would affect only a few firms and others could avoid some of the curbs by putting extra pay to a shareholder vote.

Others believe the plan does not limit total compensation because it allows companies to boost awards of restricted stock, the paper said.


Another Obama rule, another loophole.

You've got to admit it's a pretty good strategy on Obama's part. Declare a rule with a press conference that will get front page coverages, but allow loopholes that will continue business as usual that gets a back page mention.