Obama recently proposed federal regulations that would cap executive pay at the so-called "bailout banks" to $500,000 per year. It is a brazen step that takes advantage of the current economic problems to impose a populist and socialist measure. After all, $500,000 would be more than enough for us, why not bank executives?
Consider the example of the woeful Detroit Lions. They lost every single game last year. Part of the problem lay in the coaches. The head coach made poor decisions, including sticking by a relative that he hired as a defensive coordinator. Suppose the federal government bailed out the Lions and imposed at $500,000 per year limit on their coach salaries?
The best coach out there without a job is former Pittsburgh Steelers coach Bill Cowher. He brings a unique style and a wining track record as well as an intense work ethic to the job of head coach. Cowher ranks as one of the winningest coaches of his time. If he was looking for a job, the Detroit Lions would love to have him. With their declining status among NFL franchises, a coach like Cowher would have lent immediate credibility along with experience building great teams.
Bill Cowher would not mow your grass for $500,000 per year. He is one of the greatest of his time, a proven winner. Cowher, if he returned to coaching, would command millions per year and a guaranteed contract that would continue to pay him even if he were fired for complete incompetence. It would take a so-called "golden parachute" and a huge salary to attract such a figure to the organization to begin with. A mere half million dollars per year would only bring a mediocre personality and more risk of failure.
So now, at a time when the bailout banks need to find dynamic, quality, proven leadership among the ranks of their executives, Obama wants to put them in a no win situation. Government control is no solution. Obama continues to struggle due to his lack of understanding of politics and now economics as well.
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That being said, some of the banks are doing very little to help their own cause. their own foolishness has given socialists the opportunity to get public support for their plans. Wells Fargo received buyout money, then turned around and planned executive trips to Las Vegas. These were later canceled.
Shelley Moore Capito blasted them, stating "Let's get this straight: These guys are going to Vegas to roll the dice on the taxpayer dime? They're tone deaf. It's outrageous."
The responsible companies simply dealing with hard times need to speak up and criticize their colleagues for irresponsible behavior.
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