Thursday, February 5, 2009

Obama's First Smart Move?

I have to admit it, I like this one.

Obama's newest idea is to place restrictions on companies that are accepting "exceptional assistance" from the Federal Government (your taxes).

The restrictions include (but are not limited to):

1. "Golden Parachute" cuts.

2. A "name and shame" provision for frivolous spending.

3. Full disclosure of all spending.

4. $500,000 salary cap on top executive positions.

President Obama is quoted as saying, "This is America, We don't disparage wealth. We don't begrudge anybody for achieving success. And we believe success should be rewarded. But what gets people upset -- and rightfully so -- are executives being rewarded for failure, especially when those rewards are subsidized by U.S. taxpayers."

Well I'll be danged, I agree whole-heartedly.

Some are pointing out that it will be hard to attract to or keep quality people in the high level jobs necessary to run the businesses, but I disagree. The salary cap will keep the "rich beggars" from piling up at the "free money trough", and as to attracting talent, there are always going to be young up-and-comers who will try to prove themselves through the toughest of challenges. If someone can take a company out of the "Government Training Wheels", and back into fiscal viability, they will be able to pick their job.

My only concerns are that this idea is going to go through a "brief public comment period" that may ruin the core idea with silliness, and at exactly what point does a company get back its financial freedom? When has it been "rehabbed" enough to be returned into the wild from whence it came?

Time will tell.

H/T: Wall Street Journal