Want entrepreneurs to leave the US? Barney Frank apparently does

Published on February 5, 2009 By Draginol In Politics

http://www.financialweek.com/apps/pbcs.dll/article?AID=/20090203/REG/902039977/1003/TOC

Barney Frank supports legislation that would put a cap on executive pay at all US companies.

Now, I happen to think that if the government is handing out bailout money to a company that the government has every right to attach any strings they want. The company, after all, can decline said bailout if they don’t like the strings attached.

But the idea that the federal government should have a say over how much executives make in general is ridiculous.

For instance, congress wants to limit executive pay at any company receiving TARP funds to $500k a year. Okay, if they want to do that then that’s between them and the companies receiving the money. I happen to think it’s probably a bad idea but whatever.

What people tend to forget is that $500k is not a lot of money when you’re talking about the cream of the crop. $500k is less than what many TV stars make per episode. The TV show “Friends” had each actor making $1 million per episode. The minimum you can pay a first-season NFL player is $200,000. That’s the NFL’s minimum wage.

So if you want the attract the best and brightest to run these multi-billion dollar companies, you are going to have to pay them extremely well.

But let’s talk about entrepreneurs. If I knew my pay would be capped by the government, I never would have bothered to have my company in the first place. People who have never started and built their own successful company have no conception of what it takes to do it. It’s a combination of consistent hard work over a long period of time, consistent, sometimes painful personal sacrifice and of course the right combination of relevant skills in order to have a successful business.

So I’d be rather appalled at the idea that my skills and work and sacrifice were somehow treated by society as being less valuable than what a TV actor makes in a single week.

If the government were to suddenly tell me how much I and my team could be paid, that would definitely be the thing to cause me to either move out of the country or sell out and live on the accumulated wealth.

Comments (Page 1)

EL-DUDERINO

on Feb 05, 2009

I completely agree. If the government wants to cap executive salaries of those companies being bailed out that's fine, but to go so far as to cap all executive salaries is a really good way to destroy our economy.

Island Dog

on Feb 05, 2009

I would say I'm surprised at this move, but this is what democrats have been waiting for all along. They are making their push towards socialism, and who knows what will happen next.

EL-DUDERINO

on Feb 05, 2009

I would say I'm surprised at this move, but this is what democrats have been waiting for all along. They are making their push towards socialism, and who knows what will happen next.

If they win this one the next move will be for the government to start setting all executive wages not just the top ones. After that it will be to set the wages of workers. Eventually the government will want to set all wages, yet I guarantee that in all of their meddling they will retain the right to give themselves raises every year no matter what's going on in our economy. Ah socialism, it works so well for those in power while screwing over those it claims to want to benefit.

Moderateman

on Feb 05, 2009

This gem coming from the only people in America that can vote themselves a raise any time they feel like it.

CharlesCS

on Feb 05, 2009

I still don't understand how so many still have faith in Obama. But hey, ignorance is bliss for the Democrats.

EL-DUDERINO

on Feb 05, 2009

I still don't understand how so many still have faith in Obama. But hey, ignorance is bliss for the Democrats.

Obama aside I still don't understand how the incumbency rate can be around 90% when the approval rating in congress in in the teens. We have some members of congress that admit that they have basically been told to vote how they're told to vote by the party leadership rather than how their constituents want them to vote and yet somehow the same jokers are constantly re-elected. It makes no sense to me.

coderunner82

on Feb 05, 2009

A limit on how much someone can get paid is ridiculous.

However, making an executive personally responsible for the failure of a company is a good idea. And might lead to more responsible behavior by some.

Daiwa

on Feb 05, 2009

But the idea that the federal government should have a say over how much executives make in general is ridiculous.

Understatement of the year. Barney deserves nothing but ridicule, scorn & a return to the private sector he so despises. His head is so far up his ass he can eat his own gallstones. Maybe he'll choke on one & put us out of our misery.

stevendedalus

on Feb 05, 2009

So if you want the attract the best and brightest to run these multi-billion dollar companies, you are going to have to pay them extremely well.

You know damn well Barney was referring to the Tarp. You have a tendency to defend your own personal position even when it has no relation whatsoever to you. In this instance the "best and brightest" were dumb bastards and should be fired.

stevendedalus

on Feb 05, 2009

I would say I'm surprised at this move, but this is what democrats have been waiting for all along. They are making their push towards socialism, and who knows what will happen next.

Not even Draginol would go this far. You and your ilk are paranoid.

VarekRaith

on Feb 06, 2009

stevendedalus

reply 9

So if you want the attract the best and brightest to run these multi-billion dollar companies, you are going to have to pay them extremely well. You know damn well Barney was referring to the Tarp. You have a tendency to defend your own personal position even when it has no relation whatsoever to you. In this instance the "best and brightest" were dumb bastards and should be fired.

Did you even read the damn article Brad posted?

cactoblasta

on Feb 06, 2009

If that's the case, vote 1 Barney Frank!

kingbee

on Feb 06, 2009

You know damn well Barney was referring to the Tarp.

while i can find all kinds of "He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies," kinda stuff, i'm unable to locate a transccript of frank's statement or anyone quoting his exact words.

stevendedalus

on Feb 06, 2009

Did you even read the damn article Brad posted?

Yes, I did, but I doubt you did.

Mjollnir64

on Feb 06, 2009

I'm confused... How is capping salaries for non-government related positions even legal? Let alone within congressional jurisdiction.

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