Wednesday, President Obama announced a new ruling for the payment of CEO’s. Obama ruled that executives are going to have to start accepting lower bonuses. The ruling is for the executives of financial firms.
Expert opinion shows that corporate America can also expect the same standards in the near future. The recent exposal of the $18 billion in Wall Street bonuses is the spark that led to Obama’s ruling.
Congress has attempted to put a salary cap on the pay of executives before and this time, with President Obama leading the way, the passing of a bill can be expected this year.
The plan in question is intended to permit nonbinding shareholders to vote on the salaries, however, some feel as though a government ruling on the pay would be much more beneficial.
Even though it is expected that the 2008 salaries are already lower than in previous years, it is doubtful that they will match the drastic falls that many corporations took in the fiscal year.
Some experts suspect that 2008 salaries may have actually been higher than years past.
But one thing is for certain, with President Obama being as hands-on and progressive as he has been, something will without a doubt be done about the unreasonably high executive salaries in America.