Obama caps executive pay tied to bailout money

So now the government owns large pieces of U.S. banks and will now dictate what executives get paid. This is more of a political move than one that has any real effect on the nation's economy. I'm really not sure how I feel about this. On one hand I despise the fact that the guys who effectively destroyed their companies are rewarded with huge compensation, on the other hand will they not now go to non-bailout companies for larger compensation and leave the companies with a lack of talent? When a government controls corporations and employees pay, is that not Socilaism or worse?-Lou

Obama caps executive pay tied to bailout money

WASHINGTON (AP) -- President Barack Obama on Wednesday imposed $500,000 caps on senior executive pay for the most distressed financial institutions receiving federal bailout money, saying Americans are upset with "executives being rewarded for failure."

Obama announced the dramatic new government intervention into corporate America at the White House, with Treasury Secretary Timothy Geithner at his side. The president said the executive-pay limits are a first step, to be followed by the unveiling next week of a sweeping new framework for spending what remains of the $700 billion financial industry bailout that Congress created last year.

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http://finance.yahoo.com/news/Obama-caps-executive-pay-tied-apf-14250829.html