Chelsea Green Publishing

Chelsea Green Blog

Right war, wrong battle

The problem with the Bush/Paulson bailout plan is not—I repeat, NOT—the paychecks that financial corporation CEOs receive. Ezra Klein noted this yesterday as well. (With follow up today.) The NYT is now reporting that “Paulson Gives Way on CEO Pay.” Sure, it’d be frosting on the cake to have rescued corporations impose caps on their CEO’s salaries. But in the big picture? Big whoop.
  • It will not in any way affect whether tax payers are left holding the bag.
  • They will find a way around it and end up richer than you and me and everyone who reads ChelseaGreen.com put together. You know that, I know that, Congress knows that, Paulson knows that, so let’s not kid ourselves.
  • If this “concession” allows the current proposal to get through Congress, it will have been the greatest example of faux compromise in quite some time. It will have exchanged all hopes for responsible action with Jr. High level vengeance. We might get a little schadenfreude pleasure out of it, but it will be those Wall Street CEOs who get the last laugh, the kind of laugh that comes with seven or more zeros after it.


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