White House to curb executive pay at bailed-out banks
According to Bloomberg News, Wall Street bonuses are on track to increase by 40 percent this year. But as our partner The New York Times reports, the Obama administration will order the companies that received the most aid from the bailout to slash the pay of their top earners. According to officials who spoke to the paper, seven companies will have to cut the paychecks of the 25 highest-paid executives by an average of about 90 percent from last year. More companies will have to curb special perks like country club memberships and private planes. We look at how much the government should be involved in setting private salaries with New York Times reporter Stephen Labaton; Paul Hodgson, senior researcher at The Corporate Library; and Steve Kaplan, professor of finance at the University of Chicago’s School of Business.
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