There are a number of articles covering the new pay curbs for bail-out executives in today’s Journal. The most interesting, for my (unregulated) money, is nestled deep in the “Money & Investing” section.
There, writer/Viking Thorold Barker identifies three potential problems with the new limits on executive pay for companies receiving “exceptional” aid.
Here’s what Thor views as problematic; the new curb could:
Distort labor markets: exceptional talent at these “exceptional” institutions may bail to U.S. subsidiaries of foreign banks or to banks that have not TARP-dipped (or, hey, maybe even Ford – which has keeps announcing that is NOT taking bailout funding).
Devalue the C-suite: Since the plan does only addresses pay for executives at the very top of the organizations, these individuals could seek out lower-ranking posit