A Bill to Let Big Government Set Your Salary

US News • Views: 7,948

The House Financial Services Committee has approved new legislation that would allow the government to determine how much all employees of businesses that accept federal money should be paid—and it’s retroactive, allowing the government to void existing contracts and impose new terms.

And the government would also determine the “performance standards” by which employees would be evaluated.

Now, in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the “Pay for Performance Act of 2009,” would impose government controls on the pay of all employees — not just top executives — of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies.

The purpose of the legislation is to “prohibit unreasonable and excessive compensation and compensation not based on performance standards,” according to the bill’s language. That includes regular pay, bonuses — everything — paid to employees of companies in whom the government has a capital stake, including those that have received funds through the Troubled Assets Relief Program, or TARP, as well as Fannie Mae and Freddie Mac.

The measure is not limited just to those firms that received the largest sums of money, or just to the top 25 or 50 executives of those companies. It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds.

In addition, the bill gives Geithner the authority to decide what pay is “unreasonable” or “excessive.” And it directs the Treasury Department to come up with a method to evaluate “the performance of the individual executive or employee to whom the payment relates.”

Jump to top

Create a PageThis is the LGF Pages posting bookmarklet. To use it, drag this button to your browser's bookmark bar, and title it 'LGF Pages' (or whatever you like). Then browse to a site you want to post, select some text on the page to use for a quote, click the bookmarklet, and the Pages posting window will appear with the title, text, and any embedded video or audio files already filled in, ready to go.
Or... you can just click this button to open the Pages posting window right away.
Last updated: 2021-06-05 2:51 pm PDT
LGF User's Guide RSS Feeds Tweet

Help support Little Green Footballs!

Subscribe now for ad-free access!Register and sign in to a free LGF account before subscribing, and your ad-free access will be automatically enabled.

Donate with
PayPal
Square Cash Shop at amazon
as an LGF Associate!
Recent PagesClick to refresh
An Epic Takedown Appears to Be in the WorksAn epic takedown of Facebook is afoot: But going back to the WSJ series on Facebook, the quote in today's paper is priceless: "A now-former executive questioned the idea of overhauling Instagram to avoid social comparison. 'People use Instagram because ...
Eric The Fruit Bat
14 hours, 15 minutes ago
Views: 1,039 • Comments: 0 • Rating: 0
Tweets: 1 •
#Thegreatpoolpondconversion - 210912We got our replacement solar panel.Figured we'd install, then take readings to sort of know if something was wrong in the future.One panel at a time, then pairs of 2, then all 3. Because they all connect to one feed ...
Dangerman
22 hours, 38 minutes ago
Views: 127 • Comments: 0 • Rating: 3
Tweets: 0 •
#Thegreatpoolpondconversion - 210905Not having that third solar panel for 3 weeks, it’s clear now that we definitely needed the upgrade when we decided in November. 3 puts us over the top of more electricity than consumption. Still no ETA so we turned ...
Dangerman
1 week ago
Views: 423 • Comments: 0 • Rating: 4
Tweets: 0 •
Evangelicals and the Limits of Evangelical EmpathyLink to the article at: alternet.org She writes of her own experience where she turned against evangelicals. Here are the critical paragraphs to think about. And this will bring me to the ongoing evangelical moral panic over exvangelicals, those who ...
JOE 🥓
1 week, 2 days ago
Views: 500 • Comments: 0 • Rating: 0
Tweets: 3 •
How Did the United States Treat the Creator of…The SaintJust a reminder of how one Leslie Charteris was treated by the Chinese Exclusion Act…and California’s anti-Chinese laws. Just in case you didn’t know, Leslie Charteris was the creator of this literary figure… Charteris himself wasn’t far removed from his ...
JOE 🥓
1 week, 4 days ago
Views: 690 • Comments: 1 • Rating: 3
Tweets: 3 •
#Thegreatpoolpondconversion - 210829One of the solar panels went bad. 10 months.Good thing we built our solar distribution wall with all the meters and stuff.Still took several weeks to figure it out. A week of emails with the company and they're sending a ...
Dangerman
2 weeks, 1 day ago
Views: 899 • Comments: 1 • Rating: 5
Tweets: 0 •