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Should the government intervene in corporate executive compensation?

October 30, 2009

Analysis of:Obama Taking Hands-Off Stance on Citi, AIG Pay | www.bloomberg.com

Obama’s administration should not have to micro-manage the financial institution, such as AIG, Citi, which received tarp money. However, the administration is correct in letting Kenneth Feinberg, U.S. Treasury Department, handle this issue concerning misappropriation of funds. The government should have given tarp money with strict restrictions on use of funds: (i) increase cash reserves level, (ii) reduce debt, and (iii) spend on capital investments.

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