Obama caps on bailout bank CEOs = hot air

As a follow-up to Shane’s announcement of good news, I would like to add: The horse is already out of the barn!

Sheesh. I really do not understand why anybody should be impressed by Obama’s announcement that bank CEOs will have their pay capped.

Since the rules are not retroactive, they won’t affect Bank of America, which has already received $45 billion in bailout funds. Its CEO Ken Lewis earned more than $5 million in salary and cash bonuses in 2007 – and another $14 million in stock options and other income, reports CBS News correspondent Anthony Mason.

Nor will it affect Wells Fargo, which has received $25 billion in TARP money, Mason adds. Its CEO John Stumpf took home more than $11 million in salary, bonus and stock.

Healthier banks that will receive bailout money technically would also face the $500,000 cap. But they could avoid it by providing full public disclosure and holding a nonbinding shareholder vote.

As an aside, I find this “compensation” industry quite exciting. I never heard of a “compensation expert” or a “compensation consulting firm” or a “compensation research firm” before. Hmmm…. [To anybody who thinks I am just plain ignorant, I am being sarcastic. I am poking fun at corporate cronyism and the court toadies it attracts.]