advertisement

The world-famous Internet site of the Nationally Syndicated Neal Boortz Show!

Search Boortz.com
Enter search terms:
Browse Boortz.com
Today's Nuze

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."

Frederic Bastiat

GOVERNMENT SLASHES EXECUTIVE PAY

By
Neal Boortz
@ October 23, 2009 8:46 AM
Permalink | Comments (46) | TrackBacks (0)

When in trouble ... appease the people by playing into their wealth envy. Right now, the liberals are upset with Obama and the Democrats for not being liberal ENOUGH. Republicans are upset about the impending government takeover of healthcare. But if there is one issue on which the two spheres may ... and that's a big "may" ... overlap, it is the issue of wealth envy. And so it has been since the dawn of civilized man. Thousands of years ago nomadic camel herders harbored seething envy over individuals or tribes with more stuff than they had. As you know, in ObamaLand everyone should have an equal amount of stuff.

So after weeks of focusing and floundering on healthcare and global warming; and ignoring the needs of our troops in Afghanistan, suddenly we get this announcement from Washington: we are going to cut top executive pay at the biggest corporations that took bailout money. Of course many Americans are now rejoicing! "Great! These evil rich people are getting exactly what they deserve!"

Then, the very next day we see the White House pulling away from bearing any reasonability on the issue. Officials in the administration say that they didn't have much to do with the decision at all. It all came from one man: Kenneth Feinberg. The Pay Czar. This Obama appointee (without any sort of Congressional approval), single-handedly decided to cut CEO pay for these executives. Is Obama going to take responsibility for ANYTHING that comes out of his White House?

So now the question is ... how far will this go? Just the other day, Obama also announced plans to increase lending to small businesses and give them access to rescue funds. Will Kenneth Feinberg eventually have the "authority" to slash salaries of top executives at these small businesses that take bailout funds?

Let's take a closer look at this Kenneth Feinberg fellow ... how did he come to have so much "authority" that he is able to cut salaries at private corporations in this country? If you'll remember months ago, Congress decided that it wanted to crack down on millions of dollars in AIG bonuses. There was only one slight, teeny-tiny little problem - Congress does not have the Constitutional authority to do so. Maybe you've heard of a little something called the "Bill of Attainder"? This basically limits Congress from passing legislation that would single out or punish specific people or groups (or companies).

Then magically, Obama creates a new czar in his administration. This man would be a "special master on compensation." Ta-da! Now if the government wants to punish certain companies, all it has to do is call on its compensation czar.

Pretty clever, huh? And we're supposed to think that The Community Organizer is oblivious to all of this.



0 TrackBacks

Listed below are links to blogs that reference this entry: GOVERNMENT SLASHES EXECUTIVE PAY.

TrackBack URL for this entry: http://boortz.com/blogging/mt-tb.cgi/48147

Jamie Dupree's Blog

If you enjoy Neal's daily chat with Jamie Dupree, you'll love Jamie's Blog! Check it out for analysis of the campaigns and goings on in Washington D.C.

Cristina Gonzalez and Laura Nunemaker assist in the daily preparation of Nealz Nuze!


Avg. rating: N/A

What others are saying

  • Czars...
    Read the "10 Planks of Communism". See how many are in place already in some capacity...
  • I see the problem
    The (dare I say) rich don't see themselves as the looters for which they ARE. To make things worse, poor people who think that they are middle class are actually brainwashed by boortz and others. Greed drives you into thinking that you may actually be one of those rich people some day. The mere opportunity of it is so tantalizing that you buy everything that talk radio tells you.
    In case you missed it, you may want to see Michael Moores movie where he will show you vividly how the _rich_ are looting this country and getting away with it. Some of you are so fooled, you will never see it. You are the ones who will become poor by trying to become rich.
    If everything is so about the stock holders, why then do the stock holders get pennies (if that) while the ceo and the boards along with the rest of upper management get paid so much even when they fail?
    The upper management is so pious that they can't comprehend how they should take a pay cut or god forbid not get a bonus? Really.
    "When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."
    Michael Moore could just as easily use this quote to make his point. It describes bankers and ceo's perfectly.
  • lane meyer
    2 dollars, I want my two dollars
  • re-Joyce
    i should have mentioned it. thanx!!! :O)
  • @Frank Sanders, Doc, Commoner, et al
    Your anger is misdirected.

    Some of these CEOs took handouts...but who was offering them? The very people that you are slaving away for 8+ hours a day at work so you can "donate" half your paycheck at tax time. The very same people that are supposed to be spending your money wisely. They will tell you that they neeeeeded to bailout these banks or the sky would fall-- but that is simply NOT true, not even slightly.

    They are playing on your ignorance, and purposely setting the banks up as scapegoats so you can't see them for what they are-- thugs taking your hard-earned cash and indirectly, under the guise of "bailout," giving it to their buddies in the banking industry and unions.

    You get angry that the banks took the money...but there would have been no money to "take" if the thugs in office didn't offer it in the first place.

    You guys want to hang people for incompetence, gross negligence, and failing to uphold fiduciary duty? You need to start in Congress.
  • ..........SHAM..........WOW!!!
    AWESOME!!!!!!!!!!!!!!
  • Doc
    You are skipping over something, it's the government that approved that. And guess who else made lots of money on that deal? "Friends of Timmy".
  • holy smokin' flat fish...............
    I just had a monster brain fart......smells like.....neber mind...

    here is a new plaque fo' osamabama....no need to have any ol' white guys stuff lyin' around......

    ok here it is.......

    ..........SHAM..........WOW!!!
  • Are they worth it?
    If these CEOs and upper level executives were really worth the kind of salaries they have been receiving then their companies wouldn't have been in line for government handouts. Since the government now owns the businesses I dont see a problem with them having their salaries slashed as punishment for their incompetance.
  • the wood shop......................
    POLICIES...........ol' harrys plaque....THE BUCK STOPS HERE.....was sent over to the wood workin' shop....you kno' that lil' building with the cresent on the door behind the treasury building.........

    and the craftsmen there did a lil' work on it......it now reads......

    .............THE BUCK STOPPED.........
  • Cut Obama's Salary
    Maybe Feinberg will cut Obama's salary. He's a failure and the top executive of a once prosperous corporation.
  • you wanna hear where they're ripping us off, today?
    Government Gives Money To Banks So Banks Can Lend It Right Back To Government, We Pay The Interest. Cost: $1 billion per bank


    ...the big investment banks are able to borrow money from the U.S. government at 0 percent interest. Then they can turn around and buy short-term bonds that pay 2 or 3 percent annual interest. Now they’re making 2 percent on whatever they borrowed. They can use leverage to increase this number, by pledging some of the bonds that they’ve already bought as collateral on additional bonds.

    What kind of bonds are they buying? Are they investing the money in American business? “No, they are mostly buying Treasuries.” So the money is just being shuffled from one Federal bank account to another, with each Wall Street bank skimming off $1 billion per month for itself? “Pretty much.”

    http://blogs.law.harvard.edu/philg/2009/10/17/how-wall-street-is-making-its-billions/

    this is something interesting i got off the blog.

    ...a guy who spent $1.7 million on out-of-the-money put options on Bear Stearns on March 11, 2008. The options would become worthless on March 20, just 9 days later, unless Bear Stearns basically went bust. Bear Stearns collapsed the next day and the guy made a $270 million profit. He has never been identified by the SEC.

    http://www.rollingstone.com/politics/story/30481512/wall_streets_naked_swindle

    those are the king of people we are dealing with. and here comes boortz with his "wealth envy" s##t.
  • Obama's no Harry Truman
    Harry truman was famous for the sign on his desk staing "the buck stops here". Obama won't take responsibility for anything. Well, except for "saved" jobs.
  • Pay Cuts Are Fine, If...
    I'm on board with this, just so long as we include other failed entities that are polluted with overpaid executives: the executive and legislative branches of government.

    These two bodies have bankrupted their "company", and should suffer 90% pay cuts as well. Sauce for the goose, and all that.
  • have we lost???????
    SFC MAC.........once again I say thank you for your service to our nation..........

    yesterday was an anniversary of sorts for me........10/22/62....that was the first time I swore an oath to anything....

    well many years and oaths later I am swearing........and thinking that I may have lost the fight........

    you used the phrase...."end run around the constitution"......you too may have joined me in the loss column......we served, we did our duty, some of us bled, some died......because of a document some ol' slave ownin' white guys wrote........

    now you and I are powerless........sorta.....the scumsuckers are spittin' in our eyes and goin'against the very ideals we swore to protect......

    this will not end well......

    I keep yelling at Joyce and others 'bout the konstitution......soon my words will REALLY be true.....

    who will pay for the betrayal????? the scumsuckers....

    "'TEN HUT!!! HAND SALUTE!!!!! TO!!!
  • Speaking of Bills of Attainder...
    I don't suppose Neal would support legislation being discussed in Congress about defunding ACORN on grounds of alleged (though unadjudicated) allegations of fraud.
  • really...
    Envy exists in the barnyard, the fisheries, geese, birds at the feeder, Dingoes (maybe not worms). Making political hay from this is not productive.
  • Limiting pay of actors, athletes, celebrities and for that matter talk-show hosts.
    I don't like the fact that actors, athletes and other entertainers are worshipped so much in our culture or rake in millions for merely "entertaining us". Their job is to cause us to turn on our radios and TVs (and buy the sponsor's products). However we do have a choice to tune out, skip the movie, change stations on the radio, not buy the CD, mp3, or DVD, rent the movie from the dollar kiosque, or skip the NFL, or NBA game.

    In the case of the banks, and Wall Street CEOs, there are huge differences.
    (1) We TARPed out many of these institutions. (2) the executives collected HUGE compenastion packages that make the athletes and entertainers seem underpaid in comparison. (3) these executives were hugely rewarded regardless of their, or their company's performance. They aren't held accountable for their actions. They didn't have to "bite the bullet" as do most employees in other firms that are going through tough times (4) my 401K, stocks, mutual funds, etc were directly impacted by the actions of these Wall Street banks and their executives (5) my taxes will rise as a result of TARP and the bonuses these TARP funds paid out (6) my banking fees, HELOC accounts, credit cards and mortgages are affected as a result of the "risky" actions taken by the banks and their executives.

    You are darn right I want the salaries of these "talented" executives limited if I'm footing the TARP payouts. Give the money back to the taxpayers even if it means Citigroup, Fannie Mae, and Bank of America going under.

    I love movies and music, but I never pay full price for a movie. And I do not watch professional sports. So I do have a choice in how "entertainers" are compensated with my money. I didn't have a choice with TARP.
  • The Obama Czars... are merely puppets
    Just the other day on NPR, there was a Democrat apologist... forgot who... saying that these Czars are perfectly legitimate and require no Congressional approval because they have no independent power to sign off on anything. They are merely advisers.

    That fact is that it is true. If Obama says "you handle it", and tells treasury, "he is going to handle it", then the decisions and fault rest with Obama. He cannot distance himself from his Czars any more than a puppeteer can claim no responsibility for the actions of his puppets. The power of the Obama Czars come solely from the White House just as the movement of the puppets come solely from the puppeteer.

    If what Obama has said is true, then the big banks need merely say "NO",and they can continue to take bonuses. Any power of enforcement must originate from the White House.
  • Prevailing Wage Problem
    Isn't there a regulation or law about how a company must pay a "prevailing wage" for a particular job? If so, wouldn't that make this move by the administration illegal???
  • Amazing
    I work for the banking industry. I am not a highly paid worker like you think I would be, but my livelihood depends on the decisions made by good CEOs regarding the day to day operation of the banks they have been placed in charge of here.

    When I see posts about punishing the CEOs of privately held organizations, I cringe. True enough, I would not give these people the time of day, but when the Government starts stepping in to do things that should clearly be left to the stockholders of the company to perform, I am sickened. The one thing that is always left out is the Government's culpability in creating the environment that caused these banks to fail. Yes...I'm speaking full truths here, and not half truths like others here have spoken.

    All punishing CEOs does is cause the lesser talents out there to run our financial facilities. I want the highest-paid, sharpest CEO I can find to run the bank that I am employed at. Do all of you armchair quarterbacks out there got it? I would never want the government to run your industries into the ground like they have done mine, but my feeling is that the banks are just the beginning to this unrelenting Fascism.
  • Trash the heads of the companies
    and re-elect the morons in Congress who enabled this collapse. Yep, that'll show them.
  • has anybody heard of Brooksley Born?
    she is like Peter Schiff. she saw things were looking bad. she was head of the Commodity Futures Trading Commission from regulating derivatives. it was an agency few people even knew it existed. she raised certain alarm bells over the trades of derivatives, and what did our government do? the shut her up. alan greenspan said that the market was self-regulated. he also that that fraud didn't exist.

    you can see it here: http://www.pbs.org/wgbh/pages/frontline/warning/view/

    alan greenspan said he was mistaken after the market crashed. of course, the people who idolized him have gotten high level jobs with the obama administration. so nothing changed
  • I'm In The Middle Here
    I believe that the government has no business telling a private company how much to pay it's employees let alone it's executives, however, IMO this changes once you accept government money to keep you afloat. If a company accepts government, or rather, tax payer money, then the government has a right to tell said company how that money is to be spent. How can a company lay off employees but continue giving their executives golden parachutes and mega salaries all on the taxpayer dime? Now if they pay it back, then they can pay whatever they want.
  • Note
    My issue here is whether this Czar clown or Congress has authority to do this. But will the companies fight this to the Supreme Court or will they be like sheep and just abide by it? Debate what you will about those companies and TARP, but this is another issue in itself. On a side note, I hope Fox, Neal and the other talk hosts go after this in the same manner as the Van Jones deal.
  • Pheebor
    you need trials, then find them guilty and off with the top of their heads. the rest of your post is like a teenager mind who just wants to piss me off but doesn't seem to know how to do it.

    why don't you do some research, it will make you seem intelligent, unlike now.
  • Use Logic
    Look at this article first. If you can't/don't want to read the whole thing then just read the headline- pretty much sums up what I'm going to say.

    http://www.washingtonpost.com/wp-dyn/content/article/2009/10/22/AR2009102204422.html?hpid=sec-business

    I agree that the top execs should be punished for collapsing companies. Their job is to increase the worth of the company (by increasing stock prices). The CEOs obviously did not do that and now they ARE paying the price. What kind of company is going to hire those guys ever again? They ARE going to be taking HUGE paycuts because they will never work as a Top-Level manager again.

    What Obama and his administration are doing is not going to hurt the guys who brought down the company, but instead the guys who are working to bring it back. Those guys should not have their pay cut because they have the highest opportunity cost to be there. You dock their pay, they leave to go work where they won't get screwed, and then you have even more incompetent people leading the organization, thus worsening the problem.

    Take a finance class from Mark LaPlante and you will understand.
  • About freaking time
    I don't understand Neal's obsession with protecting the very people who nearly bankrupted this country. Common sense says their pay should be capped and at a very small figure, like zero. Afterall they made plenty of money destroying the American economy. Many of these "CEOs" are the very scum that should be put on trial for lying to shareholders. A few at the top skimmed company profits while essentially running Ponzi schemes that made Madoff look like a minnow in a shark tank. They should consider themselves fortunate to not be in jail, let alone have their jobs (which is better off than millions of un-employed Americans that their unethical actions directly caused.)
  • Pay Czar setting Dangers presidencies.
    First – I do agree that CEO’s pay should be tied to the performance of the company. If the company does poorly then the CEO should feel the pain.

    Now to the REAL SCARY issue. The Pay Czar is setting very dangerous presidencies. From my understanding of what happened from reading several news organizations is that –

    - The Pay Czar issued a policy that affects companies that took tarp money.
    - The President said he AGREED with it AFTER the Policy had already been sent out.

    Here lies the dangerous presidencies – Czars are according to the President “Only Advisers.” So, who gave the Pay Czar the legal right to dictate Policy to a private company? Or better yet, where does the Pay Czar get the right to dictate policy that by passes congress.

    Congress issued the Tarp money and set up the rules that the money was to be distributed. Therefore Congress needs to pass a law if they are going to make a change to an existing law. I would not agree with it but I would feel better if this came from congress. A Czar has no authority to change the laws or rules established by Congress.

    This sets up very dangerous presidencies. Now let’s say the Communication Czar does not like what is going on in the media. He in acts a policy to punish the groups he has an issue with. What is to stop that policy from going into affect? Once you let one Czar have power to set policy that bypasses congress, what is to stop the others?

    If Presidential Advisors can set US Federal Government Policy, why do we need Congress any more?
  • This also means that the legislation passed preventing ACORN from receiving federal dollars was illegal. I've heard about the Bill of Attainder but Neal just clarified it for us.
  • This is a dangerous precedent
    If people tolerate even agree with the Federal Government setting exec pay... who is to say that they can't set everyone's pay? It could happen as it takes vigilance to maintain liberty in a society...

    Also, when this takes root, many top execs will just move to a more business friendly climate... Brazil anyone??
  • T Shirt Doctor
    Wow, a bullet in the back of the head. I don't suppose you need trials, or evidence of specific crimes. And amazingly, its a whole profession, bankers. What a genius you are, Mr. Doctor, you seem to understand how things really are. Its obvious to anyone that all those who went into the profession of banking clearly all need summary executions immediately.

    I do hope that some tellers get spared though, I suspect some of them might be working stiffs who were not part of the grand plot. But I could be wrong; Mr. Doctor only knows the full details. I hope he can release a list of names soon.
  • Government slashes executive pay
    I am begining to think that the true purpose of the "czars" is to ensure that there is always a fall guy available to take the blame for any policies that fail to get the American Idol vote. If there is too much backlash, just blame a czar and fire him. Obama will then find another radical to replace whoever gets the axe.
  • whether or not
    I agree with a CEOs pay and/or bonus, I heartedly disagree with obama and his henchmen dictating what they get paid. This is only one of the steps where he is eeking his plan to socialism/communism. Hopefully this fraud will be found out soon. I fear our country will not be able to make it until 2012 as a free entity with a viable Constitution.
  • How about limiting pay for...
    Actors, Actresses and Pro Athletes -- after all, how can the common folk afford to go to sporting events or the movies when these overpaid pros keep making the prices go up? Oh wait, they earn and deserve that money, don't they? Not like those evil CEO's.
  • A couple of questions come to mind...
    If these people were the best and brightest, why did they need a bailout?

    If it was forced upon them and they didn't need it, why didn't they put it to the side and as soon as the government announced they would cut their pay, just give back the loan they didn't need?
  • mattisben
    look up Oath Keepers
  • Can't have public debt and private profit
    The companies that took government bail out money ceased being wholly public companies. You can not have public debt and the private profit. The government should have never been involved with bailing out these failing companies in the first place but since they did and it was with my tax money. I don't want my tax money going to these crooks that helped put us in the economic predicament that we are in and making them even more wealthy. That is not wealth envy..I'm all for a person making as much as he can but in an honest and ethical way. What Goldman Sachs and company have done to this economy is nothing short of criminal.
  • The Pay Czar....
    Another Obama end-run around the Constitution.
  • Makes Sense
    I don't like that the Govt is dictating pay for banks that didn't want bailouts but were forced to take them. But for AIG, GM, etc. the Govt is the owner. Owner makes the rules (shareholders that vote on board of directors). These folks are somewhat Govt employees. If they don't like it, tough, shouldn't have screwed up so bad.
  • Great idea!
    The government should next limit the number of pee breaks for claims adjusters, forcing them by edict to wear government-approved adult diapers.
  • "Great! These evil rich people are getting exactly what they deserve!"
    i don't think so. what they deserve is the old chinese custom of dealing with government fraudsters. a bullet in the back of their heads.

    don't you people realize that these bankers have defrauded us, and looted us? and here, neal is talking about "wealth envy." he likes the news story about granny shooting some guy, but the banks who have looted us out of billions of dollars -- wealth envy.

    i don't know why this is news. there's not going to do anything about it. its too late. they got away with it. and they're going to come back for more, just as soon as the economy gets back to not-quite normal.
  • When
    When will the vast majority of people in this country wake up to what a lot of us have known about Obama all along? That this guy does not take responsibility for ANYTHING! This is the same guy who voted "present" on most legislative votes when he was a Senator so as not to be held accountable for his voting record. This is the guy who dilly-dallies about making decisions about important things like the conduct of the war in Afghanistan because, God forbid! he should tick off the super libs in Congress and make them hold up his takeover of the health care in America. In the meantime, people are DYING! But a lot of us knew this during the campaign. And people like Neal told us this. And the sheeple voted for the guy anyway. Obama is that boss we all hate at the office. The one who doesn't do much of anything, but takes all of the credit and none of the blame.
  • I agree
    You are exactly right Neal, I have no idea why crybaby conservatives are so wealth envious. First they start crying about the ideas of Warren Buffett. Yeah, only crybaby conservatives would complain about advice from a mega-billionaire to help the economy. And theyn the crybabies complain about T. Boone Pickens because he wants to take the Nation off arab oil. I know crybaby conservatives like holding hands and walking w/ arabs, but they should learn to not be so envious of wealthy AMERICANS
  • Setting Payq
    Welcome to the NEW NRA (Not National rifle assoc, neckid). The camel has its nose under the tent. Can hardly wait to find out how much it will cost me to dry clean my suit once this administration sets all of the prices and wages.
  • Czars
    Maybe it is time for the military to remove all those who swore to uphold the Constitution but are treating it like a rag.
send to a friend  view as printer-friendly  RSS feeds
advertisement
advertisement
advertisement