Barack Obama- Non Corporate President? Obama Orders Pay Cuts

[.:Piper_2051:. 0]

By Martin Crutsinger, THE ASSOCIATED PRESS, cp.org, Updated: October 21, 2009 3:46 PMU.S. to order pay cuts for executives at big bailout companies: AP sources

WASHINGTON - The Obama administration plans to order companies that received huge U.S. government bailouts last year to sharply cut the compensation of their highest paid executives.

A person familiar with the decision, who spoke on condition of anonymity because it has not been announced, says the seven companies that received the most assistance will have to cut the annual salaries of their 25 highest-paid executive by an average of about 90 per cent from last year.

This person says the Treasury Department will announce the deep pay cuts within the next few days.

The seven companies are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

Article Location: US to order paycuts for executives

OK, so Barack has taken a HUGE step in starting to address the corruption in the American system, or is this just a ploy cover something else up?

Im still not sure what to make of Obama right now. He wins the Nobel Peace Prize for what? he has done nothing that has really changed anything as of yet, but "Hey! lets give him the most prestigious humanitarian award around..."

Im glad that he is ordering these cuts, it shows that finally someone, with the ability to do something about it, has noticed how stupid bailing out companies with FAT salaries is.

I would like to know what everyone else thinks as Obama seems to be on the right track with this, and if he keeps it up he will surpass Clinton and JFK in the popularity/charisma department.

[Spyda 0]

I agree with this 100%. The people he is forcing to take paycuts are the ones that really caused this Economic crisis. Their bad decision makings made their companies ultimatley tank, which then required some stimulus money to help them get started again. People were bashing Obama when he was helping people out with the stimulus money saying you are setting a standard that if you screw up, the Government will bail you out. I think this sets a standard that yeah America will help you out, but do not think you will not get punished for it.

[.:Piper_2051:. 0]

exactly. I mean if an institutional company (one that the economy needs for jobs etc) needs a bailout, they should get it. HOWEVER... those that benefit most from it should make more sacrifice for that benefit. The companies only look out for those in the best possible position with the company, with their high salaries and cushy perks (which should be taken away in times of crisis)

[freshpub 0]

I think all people with high salaries should take a good, long, hard look at themselves. I put bankers, politicians, rich businessmen all in the same basket here.Over here, in the UK, some politicians have been found to claim expenses for ridiculous things such as changing the toilet seats in their home. Many have been ordered to repay this, and some are now moaning that they don't have enough to live on. ?64,766 a year, allowances for two homes and travel back and forth to London... I think that's far too much when I struggle on just under ?12,000.If your President Obama has started the ball rolling by forcing pay cuts on high earners who make bad decisions, very good. Hopefully, our politicians will now see sense and realise they're just the same!

[fermin25 3]

I think Obama is giving obedience to his chiefs the bankers of Wall Street. Yeah Obama is the perfect way to keep the American people in knees aproving everything he does and celebrating all his actions. The Nobel Prize is a fraud. Obama haven?t made absolutely nothing for the world peace. Why doesn?t he retire the troops from Iraq and Afganistan? Why? What World Peace when the world is in war? I am tired of this man talking and talking about the same all the time "The Change" oooohhhh of course. He planned the coup in Honduras against Manuel Zelaya Rosales and now he is looking the peace for all latin american people...come on you Obama are a fraud.Maybe I would paint my skin using the Jackson?s process inverted and learn to talk and I was maybe in the White House talking to people that "my chiefs" order me, receiving orders from the Capitol, ohhhhhDont be fool people and latin american people before all, this black guy is the same thing that the other presidents but this is "negro" and that?s not the reason to vote for a president. I think McCain could be better president than Obama but almost all the American people let that their lives be directed by the mass communication media. Fools.America is a disaster. Maybe in the next election Hillary Clinton or John McCain could finish this disater made in Obamalandia.

[Obama 0]

I heard someone talking about me?

[TheDisturbedOne 1]

I heard someone talking about me?

Nope. We were talking about your twin brother here.

[inverse_bloom 0]

I totally agree with this... forcing the greedy to take pay cuts can only be a good thing. I mean look at our current economical crisis, the way capitalism has been played lately gave these sorts of greedy people the opportunity to take advantage and of course they took what they could. In doing so, they threw the global economic balance totally out and drove many within the populace into distressing situations. The wealth these people acquire is just overkill (especially for the crap business decisions some make on behalf of their corporation, or the service it provides to society). If he genuinely follows through with this and continues along this track, then this will prove him to be an incredibly strong character and a president with the kind of integrity America needs right now.

Edited October 23, 2009 by inverse_bloom (see edit history)

[TheDisturbedOne 1]

I totally agree with this... forcing the greedy to take pay cuts can only be a good thing. I mean look at our current economical crisis, the way capitalism has been played lately gave these sorts of greedy people the opportunity to take advantage and of course they took what they could. In doing so, they threw the global economic balance totally out and drove many within the populace into distressing situations.
The wealth these people acquire is just overkill (especially for the crap business decisions some make on behalf of their corporation, or the service it provides to society). If he genuinely follows through with this and continues along this track, then this will prove him to be an incredibly strong character and a president with the kind of integrity America needs right now.

I respectfully disagree with you. I have a ton of family that are still working far past retirement (they're well over 70) and they still work. They don't make a ton of money, but they don't make peanuts. Still they may be considered "rich" by some means, so one may agree to cut their pay, or tax them.

I don't know about you, but if I worked hard my entire life, and saved my money and at the age of 75 I had a net of ~$5 million (my relatives have less, just making a point) do you think I should get taxed heavily? Taxing the rich heavily tells people to spend as much as they can, and not save their money. It teaches that you don't have to work hard to get far in life, as the government can help you if you need it. It teaches you that even if you DO work hard in life, there will be people all over the place that will put their hands in your money and take it away from you.

This makes what Obama is doing look like socialism, as that is what it nearly is. I don't mind giving money to people that are in need, but if people are just looking for a free ride through life from the government, I will not support them. I understand it is hard to get a job now, but you have no idea how many people are abusing the USA unemployment system.

[inverse_bloom 0]

I'm sure there would be alot of people taking advantage of social welfare, which shouldn't. All i can say in that regard is in Australia if you are on the dole for too long you are required to do a certain amount of hours work for it with local councils or whatnot. That really works here, but i dont know to what level this scheme is implemented in America, if at all. I'm not promoting the idea of Socialism as a good thing at all. What i agree with however, is the executive's described above taking pay cut's as a "penalty" for leading their companies astray. For instance many American car manufacturers such as Ford, GM and Chrysler based their strategic positioning on the old expectations that "Americans want big car's".This, despite what market analysis was saying, which was they "had" to go smaller. Globally people were becoming increasingly concerned about fuel prices and also to some degree concerned about the environment. These companies didn't adapt when they needed to, as a consequence they were shooting themselves in the foot years ago. Another example of this is Australia's "General Motors Holden", which is obviously closely affiliated with parent company GM America. Here production of large sedan's remained unchanged because they were banking on the fact that the market would shift back in favor of large cars. As a consequence, our local GM was about to go bankrupt a few months ago and forced to seek financial assistance from parent company GM America to continue. GM Holden has also changed it's focus from producing large cars to smaller ones. Oil companies had a large amount of influence leading American car companies down this path, here are glaring examples where corruption and greed come into the picture. It is here politicians and company heads make decisions based on personal profit or politics, rather than for the good of the company and country. I'm not suggesting that "all" wealthy individuals be taxed heavily, that would be absurd. Capitilism has many benefits, much more than socialism. But the current system of capalism has reached its threshold and needs to be changed. Corporations were initially meant to benefit society by competing for large prospects contracted out by the government, these projects were sold based on how efficiently those companies could perform; said objectives. The point is, corporations were initially set up to benefit society, but for a while now (probably since the mid 90's) they have been drawing resources away. The share market needs more regulation, as that is partially the reason for the current crisis. But also these huge companies need closer attention and more political intervention's when they are needed. There are lot of american's not in a good position right know, who have lost their homes and although recessions are inevitable this one is particularly nasty and a strong indication that some things need to be changed. Obama has gone into damage control, there are certain things he "must" do to restore balance and other things he should do. Although i agree with anyone that his health reforms aren't good, but then again i dont know the full picture there either.

Edited October 24, 2009 by inverse_bloom (see edit history)

[.:Piper_2051:. 0]

I respectfully disagree with you. I have a ton of family that are still working far past retirement (they're well over 70) and they still work. They don't make a ton of money, but they don't make peanuts. Still they may be considered "rich" by some means, so one may agree to cut their pay, or tax them.
I don't know about you, but if I worked hard my entire life, and saved my money and at the age of 75 I had a net of ~$5 million (my relatives have less, just making a point) do you think I should get taxed heavily? Taxing the rich heavily tells people to spend as much as they can, and not save their money. It teaches that you don't have to work hard to get far in life, as the government can help you if you need it. It teaches you that even if you DO work hard in life, there will be people all over the place that will put their hands in your money and take it away from you.

This makes what Obama is doing look like socialism, as that is what it nearly is. I don't mind giving money to people that are in need, but if people are just looking for a free ride through life from the government, I will not support them. I understand it is hard to get a job now, but you have no idea how many people are abusing the USA unemployment system.

OK, for one thats not the point. Just becasue someone saves money, does not mean they fall in line with extra tax cuts or anything, but If your salary is 500K a yr, then you need to share the wealth. THis topic is about bailouts not how much money you can save or anything like that. Besides, once you earn money and save it, its already been taxed (except interest)