Tuesday, March 31, 2009

Barney Frank: Your New Compensation Manager

Wonder how the folks at USBank, M&I, Chase, Associated Bank, and WellsFargo feel about this:

[I]n a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the “Pay for Performance Act of 2009,” would impose government controls on the pay of all employees — not just top executives — of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place.

...It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds.In addition, the bill gives Geithner the authority to decide what pay is “unreasonable” or “excessive.”

That should make for some surly tellers, eh?

The bill already passed through Barney's House Committee.

HT: Malkin


Neo-Con Tastic said...

When is the government going to implement its own policies?

Shoebox said...

Neo, they have. Being the smartest people on earth, they naturally get paid more than the other animals, um, people!