A proposal to limit executive pay at companies that receive government bailout money is prompting some interesting reactions on Wall Street. The New York Times reports that President Obama is considering capping salaries at $500,000 at corporations that receive federal help.
The head of a compensation and consulting firm is up in arms about it, telling the Times that
That is pretty draconian — $500,000 is not a lot of money, particularly if there is no bonus
Draconian, as in severe and cruel? That’s a good point.
How in the world can anybody be expected to endure the agony of living on half a million a year, particularly if there is no bonus. It’s simply heinous.