CNBC reported on Obama’s Pay Czar earlier this week: Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. As the Heritage Foundation has explained before, wage controls don’t work . Policy based on envy and disdain rather than sound economics will do nothing to aid a recovery.
Yesterday the United States Department of the Treasury Special Master of Compensation Kenneth Feinberg announced a wage control scheme for the 175 executives of the seven companies that have received the most funds from the taxpayer funded Troubled Asset Relief Program (TARP). At first the Obama administration denied any involvement in Feinberg’s decision. Politico reports: In fact, sources within the administration say the decision to cap corporate pay was Kenneth Feinberg’s, and his alone. A senior administration official tells POLITICO that Obama did not sign off on the pay master’s …
