$500k Salary Cap

[neatdesign]

banks are 50% to blame, but so are consumers... accepting astronomical loans without a shred of common sense telling them they couldn't afford it. I hope both sides learn a valuable lesson.

I agree -- and I think that consumers have DEFINITELY learned that lesson now. Losing your house and/or a huge chunk of your savings practically overnight can do that.

The problem is that the banks haven't learned this lesson. Several of them were planning on using bailout money to attend or host lavish conferences -- and only canceled their plans because the government found out about it and raised a (justifiable) stink. And what about when they used $18 billion of the first bailout money to give year-end bonuses to people who helped cause this mess in the first place?

I agree that the $500k salary cap is probably more symbolic than anything. But maybe it'll help the banks understand just how drastically they need to change their practices.

~ Jenney

[My English Castle]

They've instituted rules about giving people stock instead of compensation. It won't be super simple to get around the rules, but I'm sure if we're worried about a "brain drain" these rocket scientists will figure out a way.

It's the old privatize profits, socialize risk crap again. I spent a decade in the brokerage industry, and their tolerance for cheating everybody and anybody is jawdropping.

[LivingAlmostLarge]

brain drain? Where are these guys going? Companies doing well enough will to not take bailout money will keep their CEOs. Companies taking bailout money and the CEO quits, where is he going to go?

[rizzmo]

It was the smartest and brightest talent that got us into this mess. Is it really so bad if they leave to mess up things in the private sector.

[cicy33]

I just want to know where it ends. First banks and now car makers. Where do we draw the line and say, Hey you screwed up and your company is over. Other companies have closed, why didn't they get any money? See? oh yeah, and where's MINE??? REPTILE, you got my vote! lol

[carlsguide]

If a company needs bailout money then they should have to agree to certain conditions including a 500k salary cap. If a company does not need bailout money then they should not accept it and they should earn their 100 million plus bonuses with smiles on their faces.