Aren’t these high paid executives the ones that have their income targeted for higher taxes? Doesn’t the lowering of their incomes lower the projected income tax collection, pushing us further and further into a deficit hole we’ll never dig out of? Just thought I’d mention that…
The Obama administration struck a delicate balance on executive pay Thursday, blaming flawed compensation packages for encouraging disastrous risk-taking but insisting it doesn’t want to dictate how corporations reward their top people.
“I can say with certainty that nobody in the Obama administration is proposing such a thing,” he said.
Yet, at the same time, he and officials with the Federal Reserve and the Securities and Exchange Commission laid out a case for how payment structures rewarded short-term gains at the expense of long-term performance and contributed to the nation’s financial crisis.
The administration plans to seek legislation that would try to rein in compensation at publicly traded companies through nonbinding shareholder votes and by decreasing management influence on pay decisions.