Executive Skinning

The elegance of a thing is the effectiveness that lies hidden behind the obvious surface.

Limiting executive pay for firms receiving the bail out. For those that like punishment as a tool it sounds great. They would like skinning cats with knives while still alive. If they view it as punishment then they are happy. These kind of people like teeth in the bailout to bite.

What pay limit does is create incentive on the part of the executives not to receive bailout money. To keep the company from the position in which a bailout would be required. It also induces an executive to quit and go where the money might be better. That may open the job to someone that is not entirely interested in what the job will pay in money but in recognition, accomplishment, the value contribution to solutions. Non Monetary status. The cover of Rolling Stone. American Idol.

The ones that like the screams of the live cats being skinned will like enforcement of pay caps. The ones that would be capped in the future, which is probably far greater, will avoid the situation at all costs and do their job well to avoid it. That is elegant. Perhaps they will evade being capped by hiring lawyers to avoid getting caught.

Suggestion: Extend the pay caps to corporate lawyers.