Rep. Barney Frank says excessive compensation packages for top corporate executives played a key role in the country's financial crisis, and he wants to reign in that pay.
"I believe that the structure of compensation has been flawed," the Massachusetts Democrat said while chairing a House Financial Services Committee hearing on Thursday.
Frank wants to develop guidelines for compensation practices, and not just for companies receiving government bailout dollars. Frank argues the problems is much wider.
There are some changes that need to be made in the way CEO's are paid and compensated, but the government is not the one that should make them change. It isn't their place. Given time the free markets will force them to change their ways or go out of business as it did with GM, Fannie & Freddie, AIG, etc.
Congress needs to worry about themselves and their job performance and compensation for said performance. They are worrying about the golden parachutes that failed CEOs get when their own poor job performance is just as abysmal as the CEOs they are bailing out. What would Barney say if China, the country that is bailing out Rep. Frank and his free spending buddies on Capital Hill, started telling him how much he could make? After all, the Chinese are bailing Washington out just as Washington is bailing out the CEOs.
What the most ridiculous part of this story is that the Massachusetts Democratic Senator doesn't want to stop at just the companies that are being bailed out. He wants to limit the pay of the CEOs of companies that are profitable. What is he thinking? How can he justify putting limits on the fruits of their successes?