President Barack Obama on Wednesday imposed sweeping restrictions on pay for executives at companies receiving public bail-outs in efforts to stem public anger at Wall Street excesses before the White House requests new emergency funds for the financial sector. Under the plans, compensation for executives of companies gaining certain types of federal assistance will be capped at $500,000 a year. They could also receive restricted stock, which could not be sold before the government is repaid. Lex says the plan is like “shutting the door long after the horse has bolted” and raises the challenge of finding capable executives to clear up the mess.

This entry was posted by Gwen Robinson on Thursday, February 5th, 2009 at 5:49 and is filed under Capital markets, People. Edit this entry.