Sunday, October 25, 2009

Introduction- Compensation of Executives

Hi Everybody,
This is the first Blog i am posting . This blog is only my personal opinion and it just reflects that. No meaning or results should be taken out of it.
So here i am sitting typing my first post. It is in regard to the Compensation of the Executive that Pay Czar has announced regarding the limitations of pay that can be given out to the executives whose firms have taken Billions of Taxpayers money to bail them out.
I have no problem with that since it is tax payers money and they have to follow certain regulations regarding it. My problem is that how will the Pay Czar determine the amount of compensation the top executives should earn. He has slashed 50 Percent of the pay but what is the formula here. Anybody care to give a shot at it.
Next the Federal Reserve has stepped in to say that they want to regulate all the banks which comes under their jurisdiction regarding pay scale. Here again is the Fed stepping on the boundaries of the private sector.
One more like people say that if we are going to restrict compensation many talented people will leave since we need them to bring back health to these institutions. First of all if compensation is the criteria then i believe the Supreme Court Justices have more power and should be paid more than these executives and further more if their salaries are reduced will the judges or the General of the Armed Forces decide to leave their posts because they are being paid less.
Middle class is suffering and the compensation of the executives of these bailed out companies should be restricted but only them and not all of the top payers should be penalized for the fault of the few.
See you next time.

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