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Obama Pay Czar Driving Execs to Go Galt?

Posted By Conn Carroll On October 22, 2009 @ 1:18 pm In Economics | Comments Disabled

At Marginal Revolution [1] George Mason University economics professor Alex Tabarrok comments on Obama administration’s pay czar Kenneth Feinberg’s decision to cut bailed out firm executive pay by an average of about 90 percent from last year [2]:

There is no way this will work as advertised. If the administration actually follows through, most of these executives will quit and get higher paying jobs elsewhere. Executives not directly affected by the pay cuts will also quit when they see their prospects for future salary gains have been cut. Chaos will be created at these firms as top people leave in droves. Will the administration then order people back to work?

End TARP [3]. End the Obama Czar State [4].


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/10/22/obama-pay-czar-driving-execs-to-go-galt/

URLs in this post:

[1] Marginal Revolution: http://www.marginalrevolution.com/marginalrevolution/2009/10/going-galt.html

[2] cut bailed out firm executive pay by an average of about 90 percent from last year: http://www.nytimes.com/2009/10/22/business/22pay.html?_r=1&hp

[3] End TARP: http://www.foundry.org/2009/10/21/the-never-ending-tarp-slush-fund/

[4] Obama Czar State: http://www.foundry.org/2009/10/01/morning-bell-the-obama-czar-state-is-about-to-kill-the-economy/

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