Pretty much anyone who can launch a browser and manage to punch up this site is smarter than I, so maybe I will get lucky.
This is a sincere and honest question, no politics, no bias, no bull.
How is is that a president of the United States, any president, can tell a private company how much it can pay its employees?
The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.Under what authority can he do that? What part of the Constitution allows this?
One proposal could impose greater requirements on the boards of companies to tie executive compensation more closely to corporate performance and to take other steps to assure that outsize bonuses are not paid before meeting financial goals.
Without regard to whether this is the right thing to do or not, how is it that he can do this?
If I own a private investment firm, and want to set up a high risk/high return fund or program, and want to land the best-of-the-best and pay him in kind to make these investment for my private-sector clients, what authority does Obama have to say that I cannot do this?
I am honestly perplexed by this. I understand the notion that if a company is struggling, and the federal government gives or loans this company money, the feds can and probably should require a company to make some concessions regarding salary in exchange for tax dollars.
But here, Obama seems to be saying he wants to control compensation at companies that are not struggling, as a measure to prevent the company from struggling someday, despite there being no evidence that the company will ever struggle or that the compensation structure would lend to that struggle.
This truly is an honest question. If anyone has an answer, please educate me.
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