Bailout Company Executives

It is said on TV that the Obama Administration intends to cut the executive salaries of bailout companies by 50%. This has created a lot of discussion on talk radio and elsewhere.

Government should not have originally bailed out these private companies. However, since the bailouts are an accomplished fact, Government has a dictatorial right to cut executive salaries to whatever level it desires. Congress has approved the bailouts and is part of the dictatorial process. To do this properly, previous bonuses and gains from stock options or other manipulations must also be recovered.

It is also said that the major objection to proceeding with such financial benefit cuts is that good people will leave the bailout companies. Somehow it has escaped the notice of most analysts that there are no good executives in the bailout companies. The companies, such as AIG, have failed as a result of the ineptitude of the executives. If they wish to go somewhere else, good riddance. Any other company directors would be out of their minds in hiring these failures.