Article: UNCLE SAM SETS SALARIES

Outrage over the large salaries and bonuses paid to executives at financial institutions that had to be bailed out by the government has naturally led to calls for limits on such compensation. Setting those limits, however, is a job better left to shareholders than to the federal government.

A major reason for the public outrage is that multimillion- dollar salaries and bonuses were paid to some executives even as their companies teetered on the brink of failure. Basically, compensation had been separated from performance. Having the government set compensation limits without being responsible for setting performance targets and assessing whether they've been met only makes this separation ...

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