On October 22nd Harry Smith at CBS’s “Early Show” interviewed Elizabeth Warren, the chairperson of the Congressional Oversight Panel, which is responsible for overseeing companies that were bailed out by TARP funds.
She clearly believes executive compensation is the government’s business. In fact Sen. Chuck Schumer, D-NY, and others believe the government should expand its authority to limit compensation beyond just TARP recipients. “If we can do this with people that we bailed out,” he said, “why wouldn’t we make these suggestions or make this law across the board and put a governor on compensation for everybody in private enterprise?”
Most likely government contractors are next in line because they receive taxpayer dollars. I recommend you pay close attention to the excuses politicians are offering for making private business matters their business. Receiving TARP funds is the excuse used today, but I predict they’ll examine the compensation practices at government contractors and use the excuse that they receive federal tax dollars to dictate what is acceptable pay in the GovCon industry.
The short video below is a taste of what’s coming.