Executive Pay Limits : Final Word

You MUST read this article! Congress has approved the stimulus package, but there has been a HUGE impact on executive compensation. For example: the CEO of Goldman Sachs, who earned nearly $69 Million on total compensation in 2007, would only earn $1.3 Million under the new plan and $300K of that wouldn't be realized until the bailout funds had been repaid. These restrictions will have significant impact on how quickly these funds are repaid to the government. You may also see a mass exodus of high paid executives from companies that are impacted by this restriction. This will also likely limit the amount of money financial institutions borrow from the government or whether they borrow at all. I will continue to follow this closely as I anticipate there will be a search for "loopholes".