President Barack Obama announced a cap on executive pay today, 2/4/08.
President Barack Obama on Wednesday imposed $500,000 caps on senior executive pay for the most distressed financial institutions receiving federal bailout money saying that Americans are upset about this situation.
"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn't just bad taste, it's a bad strategy, and I will not tolerate it as president," Obama said during a White House appearance."We're going to be demanding some restraint in exchange for federal aid , so that when firms seek new federal dollars, we won't find them up to the same old tricks."
In 2008, Wall Street paid out 18 billion in bonuses while businesses faltered. Some of the big banks paying out bonuses argue that these bonus money is paid for the right to keep top talent.
But really, where will they go?
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