Gold9472
09-17-2009, 09:03 AM
Obama against G20 executive bonus limits
http://www.google.com/hostednews/afp/article/ALeqM5g5Pe82OqBWfNRkoE7FAPUNoKfjRA
(AFP) – 12 hours ago
WASHINGTON — US President Barack Obama does not believe G20 states should slap limits on executive pay, an official said Wednesday, as Europe readied a call for "sanctions" against banks that shell out billions on bonuses.
A week before Obama hosts the next G20 summit of top economic powers and developing nations in Pittsburgh, a senior administration official said the talks would likely produce a compromise "set of principles" on the issue.
The summit will take place a week after Obama lashed out at executives of finance firms during a speech on Wall Street, warning them not to further squander public trust by awarding themselves huge 2009 bonus payments.
But despite his tough stance, Obama still does not favor a hard cap on bonuses, Mike Froman, deputy national security advisor for international economic affairs, told reporters.
"The president feels very strongly about executive compensation and shares the concerns about executive compensation practices.
"We've done a lot here... and my sense is that the G20 is likely to discuss (it) given the interest of its members in it and come up with an agreement on a set of principles around that going forward," Froman said.
"The president has been pretty clear that he supports a robust approach to executive compensation but has been reluctant to sort of set individual compensation levels."
Earlier, a draft declaration for a European Union summit in Brussels on Thursday put the onus firmly on Obama to match his message for Wall Street with action.
"The G20 should commit to agreeing to binding rules for financial institutions on variable remunerations backed up by the threat of sanctions at the national level," said the draft.
In the statement, subject to last-minute changes, the EU leaders call for all financial sector bonuses to be tied to "long-term performance."
Seeking an end to guaranteed bonuses, the EU wants financial police to be given powers to retroactively slash payments where investments fail to deliver and tools to force boardrooms to control levels of high-risk speculation.
The EU leaders will also seek to block the exercising of stock options over set timeframes and end the insulation of top directors from fallout when banks fail, following a number of high-profile payouts to failed bank chiefs.
http://www.google.com/hostednews/afp/article/ALeqM5g5Pe82OqBWfNRkoE7FAPUNoKfjRA
(AFP) – 12 hours ago
WASHINGTON — US President Barack Obama does not believe G20 states should slap limits on executive pay, an official said Wednesday, as Europe readied a call for "sanctions" against banks that shell out billions on bonuses.
A week before Obama hosts the next G20 summit of top economic powers and developing nations in Pittsburgh, a senior administration official said the talks would likely produce a compromise "set of principles" on the issue.
The summit will take place a week after Obama lashed out at executives of finance firms during a speech on Wall Street, warning them not to further squander public trust by awarding themselves huge 2009 bonus payments.
But despite his tough stance, Obama still does not favor a hard cap on bonuses, Mike Froman, deputy national security advisor for international economic affairs, told reporters.
"The president feels very strongly about executive compensation and shares the concerns about executive compensation practices.
"We've done a lot here... and my sense is that the G20 is likely to discuss (it) given the interest of its members in it and come up with an agreement on a set of principles around that going forward," Froman said.
"The president has been pretty clear that he supports a robust approach to executive compensation but has been reluctant to sort of set individual compensation levels."
Earlier, a draft declaration for a European Union summit in Brussels on Thursday put the onus firmly on Obama to match his message for Wall Street with action.
"The G20 should commit to agreeing to binding rules for financial institutions on variable remunerations backed up by the threat of sanctions at the national level," said the draft.
In the statement, subject to last-minute changes, the EU leaders call for all financial sector bonuses to be tied to "long-term performance."
Seeking an end to guaranteed bonuses, the EU wants financial police to be given powers to retroactively slash payments where investments fail to deliver and tools to force boardrooms to control levels of high-risk speculation.
The EU leaders will also seek to block the exercising of stock options over set timeframes and end the insulation of top directors from fallout when banks fail, following a number of high-profile payouts to failed bank chiefs.