President Obama and Treasury Secretary Tim Geithner have announced new restrictions on executive compensation at firms receiving government funding.
Top executives at firms ‘receiving extraordinary help from U.S. taxpayers’ will have their compensation capped at $500,000, Obama said.
‘Companies receiving federal aid are going to have to disclose publicly all the perks and luxuries bestowed upon senior executives, and provide an explanation to the taxpayers and to shareholders as to why these expenses are justified,’ Obama said. ‘And we're putting a stop to these kinds of massive severance packages we've all read about with disgust; we're taking the air out of golden parachutes. We're asking these firms to take responsibility, to recognize the nature of this crisis and their role in it.’
SOURCE: White House