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The Pay Czar Versus the Professor

Pay Czar Kenneth Feinberg debating the erudite Professor Richard Epstein at Columbia Law School on regulation of executive compensation:

Takeaways:

Feinberg

  • In regard to the Constitutionality or lack thereof of the statue regulating executive compensation at certain TARP-aided firms “Frankly, who cares…companies aren’t gonna challenge it…I don’t know and frankly I don’t care…People have better things to do with their time.”
  • Regarding excessive risk-taking: “I know it when I see it.”
  • Since the US taxpayer is the creditor, “What’s the harm?” in regulating pay.  “Maybe there’s some good.”  Lower salaries and longer term interest in financial health through greater focus on stock compensation is prudent.
  • The pay is overall appropriate, with cash payout reduced by 90% and overall compensation reduced by 50%.

More commentary to come…

Central planning in action!

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