Outraged by the latest news stories about corporate luxuries afforded by the very same companies that took public money and assistance in recent economic emergency packages, U.S. Senator Claire McCaskill yesterday took to the senate floor to introduce new legislation that would prevent company executives receiving federal assistance from receiving compensation totaling more than the salary of the President of the United States.
“Going forward if you want taxpayers to help you survive, if you want the people at your financial institution to have a job tomorrow, then you’re going to have to limit everyone’s pay at your company to the same salary that the President of the United States makes,” said McCaskill from the Senate floor. “Now once they’re off the public dole, once the taxpayers aren’t footing the bill, then it’s not as much our business what they get paid. But right now they’re on the hook to us. And they owe us something other than a fancy waste basket and $50 million jet.”
Under Cap Executive Officer Pay Act of 2009, no employee of any private company that accepts federal dollars because of the economic downturn would be able to make more than the President on the United States – approximately $400,000 a year – until the company is no longer reliant on federal dollars. According to the bill, compensation would include salary, bonuses, and stock options.
Note: It looks like President Obama is coming on board to support a similar executive pay cap program …
click here to read the text of the act