The Associated Press reported that Kenneth Feinberg, the Treasury official leading the pay review told reporters that average salaries for the top 25 executives are being cut 90% starting next month. The action applies to the top executives at Bank of America Corp, AIG Group, Citigroup Inc., General Motors, Chrysler and Chrysler Financial.
The Federal Reserve unveiled a proposal that would police banks pay policies to ensure they don't encourage employees to take reckless gambles like those that contributed to the financial crisis. The Feds plan would cover thousands of banks. President Obama praised the action and urged Congress to pass legislation to give shareholders a voice in executive pay packages.
In this writers judgement, the above action was not only over due but necessary because the CEO's of Corporate America have proven by their past actions they are incapable of regulating their own greed. When executives make 400 times what the average worker makes and at the same time their companies are losing money, laying off workers, cutting back on health insurance only one word can describe that action. GREED.
The President and Congress need to make sure everything is in place that those companies who received bail outs pay back all the money they were loaned. Some years ago Chrysler and Mexico were the recepients of bail outs and they paid all money back plus interest. So Uncle Sam does have a record of doing something right. The President and Congress needs to keep that record intact.
