Tuesday, September 23, 2008
Dodd Pushes For CEO Pay Limits - Duh?
Senate Banking Committee Chairman Christopher Dodd said he would like to see executive pay limits in the $700 billion taxpayer bailout. I wrote about this issue on September 21st where the 3 CEOs that recklessly mismanages their companies yet somehow ended up walking away with millions of dollars. The CEO’s of the failed Fannie Mae and Freddie Mac will be leaving with a $24 million severance package paid with our tax dollars. “$14.9 million for the former CEO of Freddie Mac and as much as $9.8 million for the former CEO of Fannie Mae. Robert Willumstad of AIG is leaving with a $7 million exit package. This is on top of the millions of dollars Mr. Mudd and Mr. Syron earned in 2007. "Daniel Mudd, the CEO of Fannie Mae, received $11.6 million in salary, stock and other compensation for 2007. Richard Syron, CEO of Freddie Mac, took home about $18.3 million last year.In addition to Syron's salary, stock options and a $3.45 million bonus, Freddie Mac paid for a number of other perks for Syron, such as a car and driver, a home security system, travel costs for his wife, even $100,000 to pay his lawyer to negotiate his employment contract with the bank (http://abcnews.go.com/Blotter/Story?id=5413172&page=1)." The fact that Dodd has to "push" for CEO limits on a compensation packages made soley of taxpayer money boggles my mind. They are either so out of touch with reality or so greedy that this would make any sense whatsoever. Dodd told CNN, ""I'm prepared to act quickly, but I am not going to act irresponsibly in this," he said. "It needs to be done correctly. If it takes a little longer, so be it." "In 2007, the average CEO's pay of $10.5 million was 344 times higher on average than the average worker's wage, according to Executive Excess 2008 (http://www.huffingtonpost.com/robert-weissman/executive-pay-and-the-mar_b_125746.html)." Why should tax payers now in debt $700 billion give ANY money to the executives of these failed financial companies?