US$ 500,000 pay limit for top executives

The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of money from the Treasury Department.

"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. He said such limits will make it hard for the companies to recruit and keep executives, most of whom could earn more money at other firms.

Mr. Obama said Tuesday "if the taxpayers are helping you, then you have certain responsibilities to not be living high on the hog."

In 2007, Vikram Pandit of Citigroup made $3.1 million; Kenneth D. Lewis of Bank of America received over $20 million; and Rick Wagoner of General Motors made $14.4 million.

Hopefully, we may start discussing some ethical aspects around abusive salaries:
- short term shareholder pressure
- concept of success
- motivation for working
- social (in)equality
- gap between rich and poor
- environmental impacts of unnecessary buying
- etc

What do you think?

Maybe wanna sponsor an executive?

New Your Times' article here.