The Obama Administration pay czar, Kenneth Feinberg, has made it known that he will require each of the seven largest bailout recipients to reduce the total compensation for their top 25 highest paid employees by 50%, on average. These rules affect the likes of AIG, Citigroup, and Bank of America. The New York Times article, "Curbing Wall Street Pay, and the Corporate Boards that Set it," provides additonal overview and commentary on the topic.
It will be interesting to see how this news is received in the various circles. Wall Street will certainly exhibit a reaction. Politicians will spin it in a way most favorable to them and their platform. Individuals? Well, I am not sure how we the people will respond. I see two main reactions. The first is that this is exactly what the government needed to do to keep the greedy business executives in line. The second is that this is a classic case of government overstepping its boundaries in a free, capitalist economy. Which one is right? Probably neither, but we live in a polarized world where the "happy medium" is not an option.
