Wednesday, June 10, 2009

Special Master of Compensation

Welcome to our new Special Master of Compensation

Washington lawyer Kenneth Feinberg will be the Obama administration’s “special master” to review compensation at companies that get government bailout funds, White House press secretary Robert Gibbs said.

Feinberg will have authority to review “the soundness, the appropriateness” of compensation for the top 100 executives of companies that received “exceptional assistance” through the Troubled Asset Relief Program, Gibbs said. The oversight will continue until the aid is paid back as a way “to protect the taxpayers,” he said.

“He has the ability to review the compensation structures and determine whether or not we believe they meet the criteria of being sound and appropriate rather than excessive,” Gibbs said.

Gibbs also reaffirmed President Barack Obama’s support for giving shareholders a greater say on executive pay through non- binding resolutions. The Treasury Department is going to release details today on how the administration will implement rules on compensation that were passed by Congress, he said.

He defended the compensation oversight of private firms, saying the executives “have their jobs based on the extraordinary assistance that has been provided by taxpayers.”

Now we have an executive compensation czar, an auto czar, a central bank czar, a Treasury czar, and a overlord czar. I can't wait for what comes next. Instead of having all of these czars, the marketplace would straighten this out. Instead of having to install a framework for overseeing the compensation of executives, the government policy should have been to get the hell out of the way and let the failed firms fail! Now we have bloated failed insolvent companies that are backed by Treasury dollars that are becoming increasingly worthless. This is all in the name of the "Greater Good." Can someone tell me what the hell that means? In the meantime, I'm going to go start an auto company, build crappy cars, invite a union to make my crappy cars even crappier, sell my auto company to a private equity company for billions of dollars, and then hope to buy it back from the Treasury in a fire sale on the taxpayer dime. What the hell was I thinking trying to make an honest living?

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