The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.
Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.
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“That is pretty draconian — $500,000 is not a lot of money, particularly if there is no bonus,” said James F. Reda, founder and managing director of James F. Reda & Associates, a compensation consulting firm.
WIOD comment: $500,000 might not be a lot of money to some, but ask the fabled “man on the street” and you might get a different answer. While we don’t expect anything else than a loophole, its a nice symbolic gesture.
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