Should bank executives pay be pegged to that of the US president?
February 7, 2009
Barack Obama will make $400,000 this year as President of the United States. Some are arguing that as part of the bank bailout, auto maker bailout, everybody who’s taken too much risk bailout, the government should peg senior executives’ pay at companies that take TARP funds to no more than the President’s remuneration.
I have referenced a January 30, 2009 post from http://dealbreaker.com that does a decent job of breaking out the president’s total remuneration. Not knowing residential rental rates in downtown Washington DC, I don’t know that I agree with the $100 per sq. ft. he quotes for use of the White House (he’s also made the mistake of counting the whole house at 55,000 square feet where, to be fair, he should only be including the residence’s square footage – the rest is office and ceremonial space).
Notwithstanding this, Dealbreaker’s post clearly shows that while POTUS is only paid $400,000 to run the world’s largest and most successful nation, his total remuneration package is very healthy. With this in mind, I don’t know that the US government should be benchmarking its TARP recipients’ senior executive pay to POTUS!