Thursday, October 22, 2009

Executive Pay today, Your pay tomorrow!!!

A dangerous undercurrent is flowing within the Obama Administration to the liberties of all Americans. Set aside your party affiliation, your ideologue, and your racial bias for a moment. A little over 200 years ago several colonials put their lives on the line to ensure we'd be able to live in a country free of tyranny. Those liberties firmly implanted by the Founding Fathers in the Declaration of Independence and the United States Constitution are under assault. The proof is in a headline I read as I pick up my morning paper: Pay Czar to drop hammer on execs. Since when does an advisor to the President of the United States dictate the terms of employment?

That is exactly what Kenneth Feinberg is about to do. Feinberg was appointed by President Obama to be the Treasury's special master for corporate pay this past June. The position did not go through Senate approval process and it appears that the position has wide latitude in handling affairs of corporate pay. According to the Politico "sources within the administration say the decision to cap corporate pay was Kenneth Feinberg's, and his alone." And that "…Obama did not sign off on the pay master's decision. Feinberg didn't even brief the White House on it, the official said, but he briefed Treasury officials instead." Did I miss something since our election last year where Americans voted to allow the Government to dictate pay terms for the private sector?

I understand that drastic measures were taken to right the financial market ship. TARP did nothing to address the root causes of the "financial meltdown"; rather it just threw dollars into the furnace. The plan put forth by Pay Czar Feinberg is to "slash the salaries of their top executives by an average of 90 percent and cut their total compensation in half" (www.startribune.com). Not all companies that received TARP funds will be affected. The companies in question are: Bank of America Crop, American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

The Obama Administration is hiding behind TARP funds as the gateway for the Government to dictate executive pay terms. To agree with the decision of Feinberg is an acknowledgement of acceptance that Nationalization of the private sector is within the scope of Government. Our Founding Fathers fought against the tyranny of the King of England because of excessive taxation and control within the colony at risk of death. Americans wake up and shed the wool. The reckless independence given Feinberg is shredding the documents and principals our Founding Fathers risked their lives for.

What happens next time when a crisis hits? Yesterday President Obama sent forth a plan to open funds for small businesses. Beware small business owners and take note from the TARP fund recipients. What the Obama Administration giveth, the Obama Administration taketh.