NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Obama and executive salary caps

February 5, 2009
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All things considered, there shouldnâ??t be a fuss about President Obamaâ??s plan to cap salaries of executives in companies that receive federal bailouts.

Thatâ??s the take of Dan Dalton, an Indiana University specialist on corporate governance.

Dalton points out that Obama is open to execsâ?? receiving more than $500,000 â?? so long as the compensation is based on performance.

For the right kind of person, the opportunity is huge, Dalton says. A turnaround artist not only could draw a huge paycheck for the effort, but also could emerge as a hero.

Americans generally donâ??t mind othersâ?? making big paychecks if the money is earned. Hardly anyone complains about the compensation of Apple chief Steve Jobs because of the magic he works with technology, Dalton notes.

Most of the gall over executive compensation rises from the execs having run the companies into the ground and still living high, he says.

What are your thoughts? Do you mind executives making huge compensations if they run their companies and institutions well?
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