Executive Pay Limits

President BHO plans on limiting executive pay to $500,000 per year for companies benefiting from the bailout.... While there's a stickin'-it-to-the-bad-guy feel about it, I think there may be some unintended consequences. In order for these companies to succeed they need to be able to compete for top business talent, which may not be willing to work for a mere half-million, especially when they've been used to making many times more for that. Perhaps something more sophisticated should be put into place, like a base salary with an opportunity for a performance bonus, or something along those lines -- but we have to remember that leadership is a commodity like anything else, and putting caps on it may limit the options the companies need to help these companies emerge from the crisis.

On a related note, Wells Fargo caved to pressure and cancelled their vegas trip for their top performers. I don't really care either way, but this illustrates the problem of getting on the stage with the Federal Government... they end up running the show.