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| Version 2 | Version 3 |
|---|---|
| Obama action due on executive pay | Obama action due on executive pay |
| (about 5 hours later) | |
| US President Barack Obama is poised to reveal details of new rules limiting executive pay to $500,000 a year for firms getting a US taxpayer bail-out. | US President Barack Obama is poised to reveal details of new rules limiting executive pay to $500,000 a year for firms getting a US taxpayer bail-out. |
| His administration is also looking at other potential caps on items such as golden parachutes to executives. | His administration is also looking at other potential caps on items such as golden parachutes to executives. |
| The president is tapping into outrage at Wall Street bonuses paid in 2008 when taxpayers propped up many firms. | The president is tapping into outrage at Wall Street bonuses paid in 2008 when taxpayers propped up many firms. |
| He told NBC TV that taxpayer-backed executives had "responsibilities to not be living high on the hog". | He told NBC TV that taxpayer-backed executives had "responsibilities to not be living high on the hog". |
| Last week, President Obama said that the multi-billion dollar bonuses taken by Wall Street bankers - while taxpayers bailed out their industry - had been "shameful". | Last week, President Obama said that the multi-billion dollar bonuses taken by Wall Street bankers - while taxpayers bailed out their industry - had been "shameful". |
| And he criticised Citigroup for trying to buy a new $50m executive jet after receiving $45bn in taxpayer bail-out cash. | And he criticised Citigroup for trying to buy a new $50m executive jet after receiving $45bn in taxpayer bail-out cash. |
| Reining in | Reining in |
| The move is an initial step in a wider attempt to overhaul executive pay practices. | The move is an initial step in a wider attempt to overhaul executive pay practices. |
| WALL STREET BONUSES 2008 Total bonuses paid in 2008 - $18.4bnThis is a 44% fall on the $32.9bn bonuses paid in 2007Average payout in 2008 of $112,000The fall in the bonus pool is expected to cut the tax income for New York city and state by $1.27bn Source: New York State | WALL STREET BONUSES 2008 Total bonuses paid in 2008 - $18.4bnThis is a 44% fall on the $32.9bn bonuses paid in 2007Average payout in 2008 of $112,000The fall in the bonus pool is expected to cut the tax income for New York city and state by $1.27bn Source: New York State |
| President Obama and Congress have been considering different options to rein in the pay and other benefits enjoyed by top bosses. | President Obama and Congress have been considering different options to rein in the pay and other benefits enjoyed by top bosses. |
| They want the measures to be part of the conditions of receiving help under the Treasury's "Troubled Assets Relief Program" (TARP) $700bn financial bailout fund. | They want the measures to be part of the conditions of receiving help under the Treasury's "Troubled Assets Relief Program" (TARP) $700bn financial bailout fund. |
| The new proposal is being presented as being in the interest of shareholders and taxpayers alike. | The new proposal is being presented as being in the interest of shareholders and taxpayers alike. |
| 'Accountable and responsible' | 'Accountable and responsible' |
| "This is a reasonable approach," President Obama said when describing the restrictions in an interview with CNN television on Tuesday. | "This is a reasonable approach," President Obama said when describing the restrictions in an interview with CNN television on Tuesday. |
| It will be pretty tricky for the British government to ignore the new US norm for running a semi-nationalised business BBC business editor Robert Peston Read Robert's blog here | It will be pretty tricky for the British government to ignore the new US norm for running a semi-nationalised business BBC business editor Robert Peston Read Robert's blog here |
| "There are mechanisms in place to make sure that institutions that are taking taxpayer money are not using that money for excessive executive compensation," he said. | "There are mechanisms in place to make sure that institutions that are taking taxpayer money are not using that money for excessive executive compensation," he said. |
| "It's not a government takeover. Private enterprise will still be taking place, but people will be accountable and responsible and that's what we have to restore in the financial system in general." | "It's not a government takeover. Private enterprise will still be taking place, but people will be accountable and responsible and that's what we have to restore in the financial system in general." |
| There was public outcry over $18.4bn in bonuses paid out in 2008 at a time when taxpayer money was propping up the financial system. | There was public outcry over $18.4bn in bonuses paid out in 2008 at a time when taxpayer money was propping up the financial system. |
| 'Close to criminal' | 'Close to criminal' |
| The president and Treasury Secretary Timothy Geithner are scheduled to discuss details during an announcement later on Wednesday. | The president and Treasury Secretary Timothy Geithner are scheduled to discuss details during an announcement later on Wednesday. |
| And many Republicans are also angry about company decisions to pay bonuses, buy airplanes, and take lavish breaks. | And many Republicans are also angry about company decisions to pay bonuses, buy airplanes, and take lavish breaks. |
| "In ordinary situations where the taxpayers money is not involved, we shouldn't set executive pay," said Senator Richard Shelby of Alabama, the top Republican in the Senate Banking Committee. | "In ordinary situations where the taxpayers money is not involved, we shouldn't set executive pay," said Senator Richard Shelby of Alabama, the top Republican in the Senate Banking Committee. |
| "But where you've got federal money involved, taxpayers' money involved, TARP money involved, and the way they have spent it, with no accountability, is getting close to being criminal." | "But where you've got federal money involved, taxpayers' money involved, TARP money involved, and the way they have spent it, with no accountability, is getting close to being criminal." |
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