Re: CEO Pay Curbs

I don't want to dwell on this issue too much, but having read many of the comments -- and having read David's post -- I can't resist answering a few of the key concerns:

One of the many reasons I have opposed the bailouts from the beginning, is precisely because there is a feeling that if government bails out a private company, that government now "owns" that company.

This, of course, is tantamount to nationalization of private business -- which is ultimately much worse than businesses merely going under.

You and I may disagree with how much a company and its shareholders decide to pay a given CEO, but that is their decision to make. Shareholders, of course, want to make money, so it is in their best incentive to hire the best CEO for as little as possible.

And when these shareholders and company board of directors make mistakes, they should be punished for these mistakes by losing money -- or even (gasp) -- going out of business. But when government gives you handouts, government always wants something in return...

Of course, my opinion doesn't play well politically, inasmuch as the average person looks at the obscene amount of money some of these CEOs get paid -- and viscerally rejects the notion that it is fair or "right".

It is important to note that these CEOs did not walk into the company with a gun and take the money. In most cases, they were wooed by the board of directors, precisely because the company believed the salary they offered would more than compensate for the salary.

Ultimately, for me, the question is whether or not you want to exact revenge on CEO's and companies -- or whether or not you want the companies to succeed. If you want to exact revenge, then go ahead and push the CEO pay curb. But if your primary goal is to ensure that these companies will continue to struggle, essentially fighting battles with one hand tied behind their backs, then go ahead and support this un-American mandate.

Lastly, I'm not saying that the current CEOs who got us into this mess should be rewarded. Frankly, I'm of the opinion that if your company goes bankrupt, the CEO should be fired. But by imposing unrealistic mandates on these companies, we are assuring they won't be able to compete in the free market in the future...