BATON ROUGE, LA — BP has yet to make a single payment from the highly publicized $20 billion claims fund negotiated by President Obama last month at the White House. The fund, which Obama hailed as a breakthrough, is supposed to provide $5 billion by the end of the year to those impacted by the oil spill. The Pelican Institute for Public Policy, a free-market think tank in Louisiana, reports that while BP has paid $162.7 million in claims since the Deepwater Horizon explosion, that money is not part of …
President Barack Obama promised in his Oval Office speech that an “independent third party” would be responsible for overseeing the distribution of $20 billion in funds set-aside to compensate those harmed by the BP oil spill disaster. Apparently, though, “independence” is all in the eye of the beholder. When that beholder is President Obama, an “independent third party” can apparently be someone from his own administration who serves at his will and direction. Enter Kenneth Feinberg, a Democrat, Obama administration pay czar, and now-overseer of the $20 billion BP trust …
Bloomberg news has an article on Wall Street pay revealing that the CEOs of many large banks have taken big pay cuts in the past year or two (CEO pay at the 50 largest financial firms has fallen 37% in the past two years). Buried in the story was a revealing comment from Obama Administration “Special Master for Compensation” (Pay Czar) Kenneth Feinberg who declared that pay cuts for the CEOs of big banks “demonstrates better than anything the political impact of what I’m doing.” Feinberg goes on to suggest …
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 …
At Marginal Revolution 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: 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 …
