Wednesday, June 10, 2009

Obama Bank Salary Cap is Dead

At least for now it seems an idea that would do nothing more than harm the overall profitability of our financial system is dead. It's hard to imagine how anyone thought putting a cap on executive salaries would have helped. FDR tried using this policy within his New Deal and it fell flat. It did nothing more than to ensure mediocrity within an organization. Those who are worth more than a cap will allow simply move elsewhere either geographically or to another industry.

Presbo actually said a couple of months ago that we could fill executive positions will newly graduated MBA's at 100K. If you know anything about the business world, you know a good prospective MBA will not work for 100K anymore. One that will, probably is not that hot of a prospect. If you had to build a business or heaven forbid, rebuild a business would you want to hire someone just out of school with zero experience? Well I guess if you voted for an inexperienced man for president of the U.S. than you might.



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