The Prez caps exec pay at $500k

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Paul Maurer 2

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NEW: Pay for executives at companies that take bailout money capped at $500,000



NEW: Obama pledges further rules on compensation



Compensation over $500,000 will have to be in stocks with sales limit



The plan will affect companies getting "exceptional assistance," like Citigroup



BRAVO! I also liked it when he faced down Citigroup over the $42 million jet. Execs will whine that this will limit their ability to find "talent"- but look where the "talent" has gotten us!:D
 
Sorry, but I have to disagree. Look at it this way. I have a business and through gross mismanagement I run my business into the ground. I hire a CEO. He or she, jets to Washington and brings back 10 mil. I get to go on vacation and give the CEO 1 mil for the great job he/she did. God Bless America.



If we are going to place a compensation cap on anyone it should the Congressman or Senator that was stupid enough to give my CEO the money.

:D:D
 
If we are going to place a compensation cap on anyone it should the Congressman or Senator



We need to reduce and cap thier salries and make them use the SS and medicare as we do.

Then hopefully we will see massive openings for good politicians. I suspect the ones that will leave are the old worn out rich ones, that have outside intrests anyway.:angry:
 
He is leading by example I guess. Cant hold business leaders, politicos, and the like to a standard of respectibility and integrity, unless you can do it yourself. Good move. Accept the change.
 
Salaries should should be capped but bonuses should be tied to profit over a period of time. For example say that a CEO has a bonus of .01% or so after corporate taxes on profit. This money would go into a 5 year rolling average plan. Each year the exec would get 1/5th of the value of the plan. Each year money would be put in OR taken out depending on profit or loss. If the company performs the exec makes out, if not he loses money too. When he leaves or retires he removes 1/5 of the remaining amount each year the company is in the BLACK. This way he can't sell assets to make a huge one year profit. Something on this line would work in my opinion.
 
He is leading by example I guess. Cant hold business leaders, politicos, and the like to a standard of respectibility and integrity, unless you can do it yourself. Good move. Accept the change.



Right.:lol: And he's really setting a fine example by hiring, or attempting to hire in top level cabinet positions, three tax cheats (Geithner, Killefer, and Daschle) two former lobbyists, and another who's alleged to have been involved in "pay to play" schemes (Bill Richardson).:rolleyes:



Frankly, I think it seriously harms his credibility when President Obama talks of reform and transparency and then nominates these people. And Treasury Secretary Geithner really has no credibility when it comes to enforcing compliance with income tax laws. We should all just refuse to pay our taxes and then cite his example as precedent!:p



Obama is tarnished by nominees' tax problems



By STEVEN THOMMA



These first days aren't going the way that President Barack Obama hoped when he promised to change the way Washington operates. He remains popular, with broad support from the American people, but the taint of politics as usual is challenging the aura of something new.



Three of his top nominees have been caught with tax problems, two of them departing abruptly Tuesday. Two more were former lobbyists named to high positions despite Obama's ban on lobbyists in his administration. Yet another, New Mexico Gov. Bill Richardson, had to withdraw weeks earlier because of an investigation into alleged ''pay-to-play'' politics at home.



JUDGEMENT ISSUES



''This tax issue was starting to reach critical mass,'' pollster John Zogby said. ``One is a mistake. Two is a problem. When you start getting a third, it possibly becomes a question of judgment. How do you ask Americans to sacrifice while Cabinet members don't sacrifice until they get caught?''



First came reports that Timothy Geithner belatedly paid $34,000 in back income taxes, and $8,000 in interest. He was eventually confirmed as treasury secretary.



Then came Tuesday morning's departure of Nancy Killefer, who was nominated to a top budget post but had failed to pay unemployment compensation taxes for domestic help and had a lien placed on her home as a result. She asked Obama to withdraw her nomination.



Finally on Tuesday, Tom Daschle withdrew his nomination to be secretary of health and human services. Daschle, a former senator, last month paid more than $140,000 in back taxes and interest, most of it owed for his chauffeured luxury car, which he enjoyed as a loan from a private-equity firm he advised. He also reported that he had earned $5 million in two years, largely from industry groups.



Suddenly, too many of Obama's picks struck many people as business as usual rather than ``change you can believe in.''



When it was reported that Daschle had worked for a lobbying firm, for example, the Obama White House said that Daschle himself wasn't a registered lobbyist and thus was exempt from Obama's much-ballyhooed ban on lobbyists.



`DISINGENUOUS'



''I don't know how you get paid $2 million by a lobbying firm and not call yourself a lobbyist,'' Sen. John Ensign, R-Nev., said Tuesday. ``That just seems disingenuous to me and I don't think passes the smell test.''



Obama exempted another high-profile pick from the lobbyist ban, naming William Lynn as the number two man at the Pentagon. Lynn was a lobbyist for defense contractor Raytheon. The president also named William Corr, a former anti-tobacco lobbyist, as the deputy secretary of health and human services. Corr said he wouldn't deal with tobacco issues.



''Even the toughest rules require reasonable exceptions,'' White House press secretary Robert Gibbs said recently at the White House.



When the reports of appointees not paying taxes piled up, Obama and his party invited ridicule as out-of-touch elitists at a time when Americans are suffering.



''Only the little people pay taxes,'' said a Rex Babin cartoon, showing Daschle and Geithner climbing into a limousine, in The Sacramento Bee.



''There's a huge scientific breakthrough today. Researchers say they're very close to finding someone from Obama's Cabinet who's actually paid their taxes,'' Jay Leno said on NBC's Tonight Show.



Obama conceded in a series of television interviews Tuesday that his appointments suggested a double standard in which the rich and powerful get away with not paying taxes.



''I campaigned on changing Washington and bottom-up politics. And I don't want to send a message to the American people that there are two sets of standards,'' Obama said on CNN. ``This was a mistake. I screwed up.''



DONNYBROOK



At the same time, the man who wanted to lead the way to a new, less partisan politics finds himself caught in a partisan donnybrook between Congressional Democrats and Republicans over a landmark proposal to stimulate the economy. The partisan fight is feeding dissent over the proposal and eroding public support.



Obama got the proposal through the House of Representatives without a single Republican vote. A new Gallup Poll on Tuesday found that just 38 percent of those polled want the proposal passed as written, while 37 percent want ''major changes'' and another 17 percent want it defeated.

:p:p
 
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Accept the change.



What change?:blink: Looking back on history, this just seems like business as usual, and that not only did President Obama hire a bunch of Clinton Administration retreads, but he's just reviving a Clinton policy by attempting to hire tax cheats for his cabinet. President Clinton nominated a whopping eight people who ended up having tax or nanny problems.



Nominees sunk by tax and nanny problems for years



By Michael J. Sniffen, Associated Press Writer | January 14, 2009



WASHINGTON --The one excuse President-elect Barack Obama's nominees shouldn't be using if they encounter tax and nanny problems is that they didn't realize there would be a problem. Since 1993, unpaid taxes and immigration violations, usually related to household help, have sunk more than one presidential nominee with the whole world watching. But a few have survived to take office anyway.



ZOE BAIRD -- President Bill Clinton's first nominee for attorney general withdrew in 1993 after it was learned that the $500,000-a-year corporate lawyer employed an illegal immigrant Peruvian couple to provide nanny services for her son and chauffeur her around and didn't pay the required Social Security taxes for them. A federal law enacted in the fall of 1986 made it illegal to hire undocumented workers. Her case gave birth to the term "Nannygate."



KIMBA WOOD -- Amazingly, just two weeks later, Wood, a federal judge in New York who was expected to be Clinton's second choice for attorney general, withdrew her name. She admitted her baby sitter of seven years had been in the country illegally when hired in March 1986 -- before such hiring was against the law. Wood stressed she had broken no laws and had paid all required employment taxes.



CHARLES RUFF -- After Baird and Wood, this Washington lawyer and former Justice Department official was removed from Clinton's "short list" of candidates for deputy attorney general after it was learned he failed to pay Social Security taxes for a woman who did domestic work for him one day a week over the previous eight years.



RON BROWN -- Clinton's then-newly confirmed commerce secretary acknowledged in 1993 he had not paid Social Security taxes for a woman who cleaned his house three hours a week over four or five years. He said he hadn't thought he owed taxes because she worked so few hours, but he scurried to pay the back taxes and penalties and remained in office.



FEDERICO PENA -- Like Brown, Pena had already been confirmed as to his post, transportation secretary in this case, when the Baird case prompted him to acknowledge he failed to pay Social Security taxes for a substitute baby sitter who looked after his two children while their regular caretaker vacationed in 1991. He promised to pay more than $100 in back taxes.



SHIRLEY S. CHATER -- Chater, the president of Texas Woman's University was Clinton's nominee to head the Social Security Administration when the White House disclosed on Aug. 3, 1993, that she failed to pay Social Security taxes for a part-time baby sitter from 1969 to 1975. But she had paid the back taxes before her nomination, and she was confirmed.



BOBBY RAY INMAN -- The retired Navy admiral withdrew in January 1994 as Clinton's nominee to be defense secretary. Among many reasons, he listed his failure to pay required Social Security taxes for a former part-time housekeeper until just after Clinton nominated him.



STEPHEN BREYER -- When Breyer was a nominee for the Supreme Court in mid-1994, it was disclosed that the then-chief judge of the U.S. 1st Circuit Court of Appeals in Boston had failed to pay Social Security taxes for an 81-year-old U.S. citizen who worked part time in his house for 13 years. Breyer said he did not know he was supposed to pay taxes for the woman until after Baird's case, whereupon he paid the overdue taxes. He was confirmed as a justice of the high court.



MICHAEL P.C. CARNS -- The retired Air Force general withdrew in March 1995 as Clinton's nominee to head the Central Intelligence Agency as he acknowledged failing to make promised payments to a Filipino youth who had worked for the Carns family as a household helper overseas and whom Carns had legally brought into this country when he was transferred back.



LINDA CHAVEZ -- The conservative commentator withdrew in January 2001 as President George W. Bush's nominee to be labor secretary after it was disclosed that she gave a Guatemalan woman free room and board in her home and $1,500 during a two-year period in the early 1990s even though Chavez knew she was an illegal immigrant.



BERNARD KERIK -- The former New York police commissioner withdrew in December 2004 as Bush's nominee to be homeland security secretary. Amid a rising list of problems with the nomination, Kerik said he was backing out because he discovered he had hired an illegal immigrant as a housekeeper and nanny and failed to pay required employment taxes and make related filings on the worker's behalf.
 
TT



Geithner didn't pay any interest or penalties on his delinquent taxes. Daschle paid interest but no penalites. Also, Charlie Rangle, Chairman of the House Ways and Means committie, which is responsible for tax policies, didn't report rental income from a vacation property in the Carribbean for several years. He finally paid the delinquent taxes, when he got caught, but didn't pay any interest or penalties.



Talk about a double standard. Let's see what happens when the average citizen tries to get away without paying interest or penalties on delinquent taxes. So much for change.
 
And for all of the President and other Dem's big talk about reform, and chastising corporations and execs for lavish spending, seems that they don't practice what they preach.



$500K spent on Dem caucus retreats



By Susan Crabtree

Posted: 02/03/09 07:10 PM [ET]



The House Democratic Caucus spent more than $500,000 in taxpayer money over the past five years for its annual retreats at resorts in Pennsylvania and Virginia.



On Thursday, Democrats will head to the Kingsmill Resort and Spa in historic Williamsburg, Va., for the three-day planning powwow. The resort boasts multiple championship golf courses, a full-service spa and six restaurants.



Individual lawmakers pay for most of the expenses related to retreat lodging through their campaign committees, but the Democratic Caucus subsidizes some of the costs for what aides consider official business to the tune of nearly $100,000 each year, according to a Democratic aide involved in retreat planning.



For instance, the caucus picks up the hefty transportation tab, as well as the thousands of dollars in expenses each year for guest speakers, food and entertainment, according to financial disbursement records.



Democratic leadership sources were reluctant to talk about any aspect of the trip, but they defended it as an important planning session for the entire country.



This retreat is strategic planning for the country, said Democratic Caucus spokeswoman Emily Barocas. The president, vice president and three Cabinet secretaries will be meeting with the caucus to plan the direction we are taking the country in.



The topic is particularly sensitive this year after several Democratic lawmakers slammed American International Group (AIG) executives for spending more than $440,000 at a company retreat in Monarch Beach, Calif., just days after the federal government bailed the company out with $85 billion in taxpayer funds.



Several Democratic lawmakers also excoriated banking and financial companies for flying in corporate jets to Washington to testify before several committees about their need for billions more in bailout money.



Williamsburg hardly compares to a balmy beach destination, but in the past five years, some of the retreat expenses jump off the page.



In 2004, for instance, the caucus paid more than $27,000 to Executive Jet Management for a chartered flight for Bill Clinton, who addressed the issues conference. A Democratic aide said costs soared for Clintons travel because there was a horrible blizzard that caused his plane to become stuck two days longer than expected and the caucus had to spend extra money for de-icing and storing the plane.



In 2005, the caucus cut a $1,100 check to retired Gen. Wesley Clarks consulting firm for a speaking fee. Former Secretary of State Madeleine Albrights firm received $864 in 2003 for her retreat address.



Besides Obama, Biden and three other Cabinet secretaries, Democrats this year are hosting Microsoft CEO Steve Ballmer, who will talk about stimulating the economy through technology and innovation.



In the past, the caucus has also paid for food and after-hours entertainment. In 2003, for example, the Caucus spent $11,200 on food and $6,900 on entertainment. Costs for renting conference rooms at the resorts also make up a large chunk of the total. In 2004, the caucus spent at least $15,000 on space rental.



Democrats spend the most money, however, on transportation.



Since 2005, the caucus has chartered an Amtrak train to ferry members to the Kingsmill resort. It costs roughly $70,000 each year for the Amtrak charter. Democratic aides argue its necessary so that members can spend time together and not end up taking separate cars and arriving at staggered times. Traveling by train also helps ensure the safety of House Speaker Nancy Pelosi (D-Calif.), who is second in the line of succession to the presidency and requires constant security detail. In this case, the source said, security helicopters fly above the train.



In 2003 and 2004, the caucus used chartered flights and rented cars and buses to transport members to the Nemacolin resort in Woodlands, Pa. The chartered flight cost more than $10,000 and the buses were $6,500, but the hassles werent worth it: One year, a Democratic aide recalls, the buses broke down and closed down an entire highway.



Democrats and Republicans have criticized each other for the way each party pays for its annual retreat. Republicans huddled at the Homestead Resort in Hot Springs, Va., last week. The Congressional Institute, a nonprofit that pays for activities at least in part through dues from lobbyists, subsidizes the GOP retreat. Republicans also allow members of the institutes private sector advisory board, many of whom are lobbyists, to travel to the resort each year for a dinner with the members.



Democrats dont allow lobbyists at the retreat, but Republicans criticize the use of taxpayer dollars for expenses for retreats at resorts, especially during the economic downturn.



Meredith McGehee, policy director at the Campaign Legal Center, said she believes its useful for members to gather in a setting away from Capitol Hill once a year. Still, she said, when the economy is suffering and people are losing their jobs, members must be mindful to scale back and not use taxpayer dollars for luxury items.



I actually think there is utility in meeting together once a year to concentrate on getting everyone to row their oars in the same direction, she said. But how much money is spent this year and the scope of it and how many frills there are is important. It sends a message on how seriously members are taking the economic problems when people are being laid off left and right. Unlike Michael Phelps, [lawmakers] are indeed role models.



Common Causes Sarah Dufendach said she would rather have taxpayer money than special-interest money funding retreats. But she said this year, both Republicans and Democrats would have been better served by having their retreat locally at a place such as the Library of Congress.



It would have been really good PR for both sides to stay home and bring a box lunch, she said.



Yep, they're really being good steward of our tax dollars.:angry: Really leading by example...:wacko:
 
I don't have a problem with the cap. If you don't want a cap on your pay, don't look for the American people to fund your turnaround. Sell it to someone else who will loan the money at terms more acceptable to you.
 
The bailouts to the big corporations are a horrible idea anyway. Who cares- let 'em go under. The CEOs are accountable to the boards anyway.



If the government wants to bail out anyone, they can return the money to the taxpayers.



I am totally ticked that the government takes my money and gives it to reward big corporations who overpay their CEOS and who make bad products and cannot manage their money.



Give me my money back if you don't want it.
 
Something everyone has overlooked, BHO is committing an illegal act. It is against the constitution of the USA for government to own shares in a private entity and/or make policy regarding compensation for its employees.
 
Maybe now we can understand why the Congress doesn't care so much how the money is spent. For many of them, it seems, none of the money is theirs because they don't pay into it.
 
The stinks of bigger government.



I guess since BHO is capped at $400 million a year for mismanagement of the largest company in the world (the government), he feels the private sector should be punished as well.
 
Those of you who are griping at the pay-cap, are you kidding me?



These companies, including the CEO's took YOUR money and MY money because they couldn't get their crap together and did bad business. You are screaming communism, but they are the ones who asked for Federal assistance.



If you are getting billions of the US people's money, which includes part of your paycheck, aren't you going to want them to use it to better their company, not better their daily choices of Maybach's to drive to work?



$500K is not a bad living, these people aren't going to suffer unless they have already spent their money they've already earned. They have plenty of back up and connections to support them.



The banks wanted help, and by god, they need to scale back. Robbing from the poor to give to the rich at this point in time is not what we need, Obama knows that, YOU know that, and it's YOUR money the CEOs and Banks are robbing!

 
The bailouts to the big corporations are a horrible idea anyway. Who cares- let 'em go under. The CEOs are accountable to the boards anyway.



Amen, Gavin . . .



Let the markets adjust themselves.
 

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