Pay Czar! Is It Wrong

" It's time for. Do what it takes to win a war in the repeated. Right recall. It's armed door Sharon -- must for the continuing reporting on radical element. Within the Obama administration is clearly rankled the president. And his device that's what the attacks on Fox News. Paul we know -- here -- mining through when she needed dizziness six one's own. Shows 666860. Years dessert is not a right. It's a jury brought Justin from a new Mellon's world headquarters building McFerrin. Store them. Is trying to charge six ADW are -- good morning I have to confess something -- go ahead -- we're in the I've been negligent and look right in my job. -- my responsibility to find out the essence of the story before talking about it."

" I watched this on TV the coverage of the -- decision -- on executive -- and I was totally -- that's on 98% of Americans -- the -- which is -- percent of -- the American people walk -- one day I totally I understood the story based on the television coverage that executive -- was gonna be dropped to a maximum of 200000 dollars -- Which is as it turns out not the story at all not quite was unless the US pays our -- cut in half the average compensation. Compensation as opposed to salary because they get bonuses. -- Wall -- confusing they might have a base of 200 grand a year they -- a bonus of 200 grand a year -- for total compensation 400 grand a year. The US pays -- will cut in half the average compensation for a 175. Employees. That firms are receiving large sums of government aid with the vast majority of salaries coming in at under 500000. Now that doesn't mean they can't get a ten million dollar bonus that you must postpone his vast number salaries will be under 500000 dollars as caucuses are usually tied to performance. The Ramos thought I mean I don't know an honest I was so if you do well it has not been -- if you do a good job at Christmas party that might mean your performance was good hot hot hot as expected option usually spelled out in a little bit what do you tell the specifics as expected the biggest cut will be to salaries which will drop by an average of 90%. 8% according to Ken Feinberg the treasury department's special master. For compensation -- meanwhile I want to highlight -- and his is almost becomes stale allows a rule which I like the idea with the special master special match so yes if this Feinberg drops off the facing your may -- you can replace yeah I thought."

" Not a bad idea not a bad idea that is incredible film mr. fibers ruling. Special masters can make rulings. First job is looking better apparently they can now this is proud of the law that was passed in terms of the bailout of the multi multi hundred billions of taxpayer money. Provided to these companies so. You know I always say hey let's just kind of follow the law but you can also argue as we are now. That the -- is absurd the Lar is an ass in this there's worse which should not even have gotten you don't think we should bail -- Wall Street you know -- like no no no -- McEnroe why don't you talk I don't I'm consistent about. That that the bailout the necessity of the fine needles are you talking about going it to collapse it was a provision in the -- That sets up break and a couple sessions special mathematically sort of bailed out companies and not had any power. To control what the how they were spending their money while we're investing billions of -- if these firms have turned around. And the bonuses not tied to performance that's what we all said we want and that's what we -- for our money we got the benefit of -- bargain. So it it should be no well matter to the Obama administration of the special master exact compensation design. Stat to retreat from these intrusions that we've made over that line that principle that I talked about it in -- for a segment. That you don't want the United States government -- want any out of government intruding into pro."

" I'm sure as -- when they give and 75 billion dollars that's intruding. Yes it is all right so once you're once your partner in the firm we always to the American people who provided those funds. To make sure that things are being recklessly spent now listen this here's a headline the headline is not Obama. To curb executive pay at two under grand a year that was a phony headline I finally got on TV here's the real headline. Obama administration to freeze executive pay at ten million dollars. Is this too harsh do you think 617266. 68 is a -- Dukakis left left the largest single compensation package will be less than ten million dollars. And is destined trade Bank of America and employ. How about that how that is much like about this on Wall Street scattered payouts for -- more."

" You wanna get upset about something and I don't know the answer to this question but what would you say or do. If you found out that any of these companies that have received bailout funds. A funneling money to acorn. How would that sit with well if I were in the Obama administration that would have been one of my that would have been when he deal might go to -- this idea George will decide this but just who would not a -- that's ideal -- anybody out there who might be upset about the notion of executive compensation again. Ice I believe rationally tied to performance -- you preformed I don't army -- if you make in the company. Ten million -- and you make two million because that I'm jealousy you know allow what I should do was try to mimic you can say why you make of this company a real. A taken -- a fabulous flaming success. The the notion that any of these companies might be and I suspect that a couple of -- I'm still -- king. What I called BR blackmail payments to eight -- and -- corral this so are uprising has been for years window with what does that I want Barack Obama to stand up and -- by the way before we say -- do anything further on executive compensation. I wanna make sure that note no money is going to -- these goofy group."

" Yeah highway or on principle and this is why it's important how the -- helping the ha -- because the death penalty are capital punishment be appropriate if anybody's giving money to a court. So the 200000 -- may -- email -- misunderstood some of the toughest pay restrictions will be -- which has been blamed for the firm's near collapse and that's special -- of -- Ron -- no -- within that you know receive compensation more than 200000. Dollars people familiar with the -- said so that seems to -- IBM and again I -- sounds like a plan to destroy AIG narrowly saved it -- the -- certainly does and I know that few of our listeners will be sympathetic to people who make 200000 dollars the F. But debt is that is that is peanuts and designed to drive I think intelligent enough fairly rational and so -- successful people away. So what's your opinion. Goodness for because this have been very emotional in past months are sure that people are saying what the heck is going on password category given them billions of also save their butts. In their spending the money recklessly on ridiculous pay deals and some of the firms that there were bailed out early on such as the Goldman Sachs maybe JPMorgan have paid back whatever they were given by the government because they've steadied themselves and an album report. They're not subject to any limits whatsoever that payback the government is out of those only has still is still on the cheat and then you are any subject just object you'll be subject to the -- is the Obama administration being too tough by freezing executive pay at bailed out companies to ten million dollar 617. 2666860. Or would you favor. Maybe a higher limit or maybe you think the government shouldn't be doing this at all. I think it's dangerous spot I think the government's got to do it if we're if tax dollars are going in there. And you know what if the government destroys these companies and they're gonna have to do with the repercussions well a group that the problem is Todd in that case we have from the ones who have to deal with the repercussions. I want the company where -- you -- I didn't confident socialist Bolshevik around the country I reluctantly and not by my affirmative vote I am now a shareholder -- I have an interest in directly in these companies yes I do not want to be so punitive in my approach to the executive team that I end up with a -- company I want them to succeed. I'd like to see -- pay tied to performance but this is this this is just nothing but cheap theatrical politics all right that's -- against it. I think it's okay with caveats what do you think 6172666868. Thomas taught -- WR care John good morning --"

" Good morning guys -- and don't. You know you don't really trust it but is this set is it. You know it's business as usual -- guides and games for some like myself are Clark is a little more than some volatile work. And come home at night time it's 7 o'clock and guys like Q trying to get people that are out there list and then. When when. I said well at least sports cars a month but there. In the last year and -- years I'm lucky my wife -- well maybe so once every couple months we've got to cut back there hasn't been business unit as usual. There -- in the street cred. If I -- you ten grand. OK also -- going out this set of gaining back. You're going out you drank it and are you have a good time. I'm gonna come get my money economic and get it hard and you know I think there should be some regulations aren't what they should do first and foremost they're off they're no. Okay."

" Agree absolutely agreed but -- led by John what do you say about the flip side of the story which is. That businesses of business in which people make crazy amounts of money that's just how it works. And if you if the government which has no business being involved on our private corporations and their their competitive decisions. Starts coming in with their stupid politically motivated influence he could -- in the company's."

" Noting that the -- taught in a time when I get a good job at the end of the year I got various. -- of the deal is nullified all of their jobs are still be able to get my hair -- that's my that's my with Judy if I do a good job. He's gotta be compensated. And you know what they weren't doing a good job. All right that's what really -- my -- and I'm sure it --"

" Yes but the question is how do you make good policy out of that remote out of that mess that's exactly right in the end -- right there in in an emotional spot right now because the union of the call it makes the perfect point. These guys read in these businesses into the ground we were told to a legends we were told they would geniuses we were told they with a -- are are -- all that stuff. They've made bets. That job out of a six grader would not met had to make because the sixth -- has stuck common sense that god gave -- at least these guys were greedy these guys would dump these guys or everything but from that righteous anger that we feel. Now sits on now buy into the Obama team sand IRA we know better we're gonna -- tell and how to do this and how to do that by the way. Is it ready demonstration that anybody on team Obama has ever done anything."

" Competent -- know what I'm not -- in -- realm -- expertise in government -- they're and they don't appear or you're good so it's scary to think about them involved with. With the with running these businesses but. They did put billions of dollars of our money into the business is so I you know. I it's a double edged sword out on a high you can just back out altogether say let the -- is reckless with the money we've given -- minute and is insulting and irresponsible. As they choose to be Jeff what do you think about this yarn are --"

" The -- guys. That this is just another way to keep more people more businesses -- the system and keep them down. He's got all these people making 200000 you know he's gonna do the limit their pay to -- sinister role -- the company that. I -- they gonna keep the companies didn't in the conference Tucker little to make a profit up now we gonna bail them out again."

" Yet it probably actually resent the fact that Goldman a couple of other scenario paid them back because that that -- this carried out from under the grip. -- that the white and -- on the other hand though Obama went to Wall Street for fundraising two nights ago 30000 dollars a couple of so I don't I'm not sure how upsetting is about these diagonal lines."

" It's awfully quickly GM you see this selling off parts of initial bid division MGM didn't make sure armored vehicles armored division which I'm not. Don't know we'll look -- I'm here."

" Now while it's gonna be nice really have a tanker Wal-Mart to."

" Yeah great yeah. Good citizens and to be should the Democrats fight like you guys that this is all a rock and keeps more people and businesses. Under its dominant all of go to go to no more competition no more profit someone not --"

" Jeff give rewrite of the second knuckleball off fastball -- its -- on this one too -- very direct and explicit attack on the US chamber of commerce talking -- I'm serious that is an organization and I'm not carry any water for the chamber of commerce but there an organization that tries to represent the legitimate business interest of small lodge business all across the country. And somehow or other he's identified them as a political enemy. And wants to delegitimize. This is absolutely positively -- does the guy talked about transparency. Was civil debate let's have a contest of ideas we'll change the culture the attitude in the opinion of the noise coming out of Washington this is a street thuggish as it."

" Yeah well again we disagree I I for one miss Richard Nixon and I'm happy he's back -- hot hot hot and hot Mike good critic here until they are killed. Our -- what's going on like."

" Not so much you know that thing is that I don't think we should have built these companies go in the first place but that's water under the bridge. And with that we instead. I think that oh entire management team should have been changed before they got a -- about money because they're gonna repeat -- same prime suspect I think that there's the first place. There's just a matter of time. You know and in this -- compensation ghost. You can't live on ten million dollar he had -- you know what -- you ought to -- block in my shoes were a couple of weeks received you know our operatives -- work."

" How to relate to it is I mean it's astounding actually really know what you know I don't know I don't know I -- all of us who who could you kind here's -- get a -- here's our -- are related -- go -- if -- if you make a hundred -- if you make fifty grand you can think back -- when you were -- Then you feel like you're rich when you first get that 50000 dollar paycheck right. But then you have the start living up to the level of what somebody makes so much money -- on the house anymore Salmonella thing you know you're spending 65 a year they'll find it at times are tough that can find somebody making ten million."

" But you know we don't hear anybody anymore -- caller recently with gasoline prices are they spiked up so I. I'm you know we need to talk on this administration -- the power there look good do something about. Take in the oil and gasoline dropped to commodities market so people could make a fortune popped up back there very when they have to drive to work everyday and area. You know this marks based there were very surprised when -- energy one media -- total galleries felt for Florida heat oil. In gasoline and end a rational one look at what the refineries are running at 80% so they -- creating artificial showed you again. We're paying for it the -- almost instantly. I mean -- use -- pick -- truck that would be looked dubious morals to also show every night at."

" Gone up twenty cents the last couple weeks sign on scenario."

" It took about problem is this this artificial shortage. Created by the oil copper -- applauding you oil they have so much crude oil I don't know that bill that don't you have published a story. -- yet they're not refining it and that all of a sudden the inside the Wall Street jump on this. And drive the price of oil and gasoline area because it's a so called shortage what they make an."

" I have -- and I'm not so sure I mean for every commodities debt that is made this somebody on the other side take in the debt so somebody wins and somebody loses I don't know anybody who's been able to call. This economic trend that were an accurate like. -- what's what's China's economy do what's in the -- or economy do we know what they get it the United States and Europe into a business suffer and their -- at how the hell does anybody accurately projected. The -- you know what we should be popping out in order to meet our road delivery."

" Of what Michael tri nation what Mike is driving at is I think you're really interesting point that applies to both of these factors in the conversation you've got the oil markets where. The simple fact that we have not because the environmental movement we have and allowed the development of new places to refine oil. In this country to be would that Damon Milton decade up our right so you that is artificial impediment and maybe the environmentalists. Are actually not interest in the environmental at all but they're big investors in big oil and I never make it this was there a little -- I got. And I'm that normally the unintended consequent potential. Is unbelievable when the government starts tampering and that's what's really scary with the financial comfort."

" These but. At the same time what we can look at is C a financial structure in these companies that doesn't seem to incentivize responsible behavior. And that means there may be need for structural change assured. Now you real OK now you were -- both out on thin ice from I say oh sure what she does suggestion. The structural change will be statutory and regulatory restrictions so they can't make these ridiculous that's they would make -- on stupid I think any Mae and Freddie."

" I frankly less about that and more about how you structure companies' boards of directors and about -- before yes yeah so they feel received first of all you need to CEOs actually doing a job -- not getting paid twenty million dollars a year because everybody loves playing golf -- them so much on the board of directors out there needs to be higher level responsibility on the board of directors. When they hire guys given the lavish salaries when it could be they could get somebody for 10% as much who would do a better job running the company but they all look. 'cause they don't play golf together. That's the concern I have but again you want Barack Obama make these decisions you want this Feinberg character -- more trust a Feinberg to do this kind. -- hot hot hot hot hot hot fox six point seven point to myself as a hot stuff hot hot hot hot hot hot 6868. The Obama administrator administration is is clamping down. On and the financial companies and what they're paying for bonuses and they're putting a cap of ten million dollars. On the highest compensation going to somebody who works for a financial company that has received bailout money is this too harsh what do you think."

" A local -- true stories from all over the world know your stereo speaker room to room. Wow it's news Boston strokes fishermen AM sixty --"

" So had to sign up to prepare. News division -- the new -- day he died right that they don't change the name and even when coaches and I like he does a great job than very gets confused and I don't know I really don't then you it was seamless and was professional it was good. But it's that doesn't attempt to go to decade you know why that was nobody else can come in with quite Israel is much misery NN instance cooks he does in the morning. And it is just -- will -- us as to match the miserable have you saying his -- he has president I almost asked when was the last time. The seat of those jeez did you grow the lodge NASA cut -- they hang there's actually no relationship. They've beat between where they located in the scene -- hangs down these are all vaccines by the way. These are what they're all they're role to play yes you can upgrade says somethin' a little -- you know little moss I don't watch all right cause I don't know where they are you haven't lost any weight dot. Yeah I have to have got I got what -- you know I doubt happen I had somebody stuck those close in the washing machine. Check at the base reflexive as a wash it out -- not that big pile up a I hope it's a pile of laundry ferry hasn't come out that I already did laundry at Bob Cox. Wasn't -- once in awhile."

" 6172666. Seats -- were talking broad executive compensation at the big financial firms yeah. The Obama administration putting ten million dollar cap on and it AIG were the biggest drops are. The maximum salary will be 200 grand a year were concerned not seller but even compensation. We're a little concerned. That in order to satisfy the blood lust in the public that they're gonna ruin these companies earlier said."

" Preferably said in the Obama administration -- is critical issue one of them but give them credit they can smell political wins like blood that they'll like bloodhounds. And there's a righteous indignation about this and most people can't even relate to 200000 level of several million dollars nobody can relate to that type of compensation -- to having driven a firm into bankruptcy and over the edge with just dumb. Indefensible. Positions and yet at the same time I mean my point on this is. Do not let's not let a lot and got our righteous indignation. Convince us that this is -- in an appropriate policy you don't want the public sector. I."

" Why because you have to expect the government even though -- satisfying our desire. To see -- put on these people. The most likely outcome will be that the government will screw up the company's worst now they're talking about limiting executive pay in general on Wall Street. Two companies and -- bailed out two of the ten million dollars or less per year. They'll think about if you've been making fifteen million dollars a year all the sudden you have to get by and ten -- that doesn't sound so hard that is. It is a 13 reduction pretty big is a high do you feel if you're -- drive granite suddenly the government comes and says sorry no we don't like how you guys you business cap for you fifty -- yeah you're devastated as you absolutely."

" today that hello my hero. It's gonna be business that's exactly the statement it is none of your business some pay in taxes of one of being paid now missed a government agent. Get the hell off my doorstep and don't tell me all my boss what I'm worth I just wanna warn callers we do want your calls on this topic but Finneran is wearing. -- yellow -- 61726. -- is doing and then all they have to deal -- a what they call it a hotbed it's a -- sure it is this is Kirk they already that I area several comments on the style that you didn't know what you say about a -- a comment -- now. If half the WEEI gotta love the red carpet or failure -- credit. Mike good morning Lara -- Brady my colleagues have done a foot shorter and I don't have a dimple and I don't make twenty million viewers -- pile up -- out the back highlight she's that's Mario. Hey Mike what's going on."

" Good -- talked about quote sheet the spirit you'll be better abolished. -- they are a little student wrote look this guy he can make this particular decision."

" You're right about now all -- your ideas is very dialog -- calls but today and why -- been smoking something you've got to meet curtsy not -- agree with that no I think Mike's right on galaxies that are very bright guy he does lack wanting Mike and that's experience."

" Don't get death does a real. Not it is what I have to say about this whole who are. Obama smoke at various receptions. This whole issue visited mr. rhetoric about who's usually take my knee of Scott Romney is going if this father. What is based that is 88 card they have large they're disgruntled. But people let it -- because you make more than I do it's another class. --"

" Yet telling me Mike and jealousy is the worst the worst of all the emotions it is under totally what's poison."

" But right targeted so desperate. I tell you know we both goalie is the exhibit tank is already you know the average American culture. But this is just to divide our gut it's pretty new against me because if you wait what might drag makes so much it's just didn't get to exploit."

" disingenuous is disingenuous yeah absolutely I agree on I think everything Obama does he's doing it for the show. To paraphrase. Something like that another famous person -- a a US Barack what's gone on if he told the truth he'd say. We just didn't for the show -- a 61726. I'm sexy it's actually not my -- good morning -- realize the only Barack Obama --"

" Talk how we felt this. Good good good eight I'm just confused and I any of these people in government ever read the constitution. I mean it says the government does not have the right to a bridge contract if these guys have a contract with these companies the government just doesn't have a right to commit -- major danger."

" The government wouldn't be changing the government would be leveraging management I think -- in in the exchange for. The guest to make different decisions but you know what -- in a court of las flexible courts are today they might -- your -- run them -- you know it in the Iraq case."

" Since -- growing back many many years in which the government does has been given the proper. -- that is within the constitutional power. To a bridge or modify certain time tries or -- does serious contracts -- for example the government can go in and nullify that contract contracts that contemplate in illegal. Enterprise or agreement of such event that's different than -- totally illegal behavior there is it I mean it it's it's something to be watched and I think the point is a great when I love the rays had to because of the delicious irony we were told by the Boston Globe and others. That editorial Barack Obama was brilliant to keep in -- he was a constitutional scholar give me."

" A free and Brady's a constitutional scholar -- he knows how to violates the constitution with a little more finesse silly average personal scallop none nobody pays the constitution I think in government anymore in less. Of course. You're talking about the devastation of things like trying to allow FBI investigators to find out what who. Books somebody's been reading at the library then they get very nervous. Bob good morning -- WR -- atomic hotter here."

" Yes good morning -- to try to wanna commit out of a slightly different Nadal this other shareholder and one of those in bank of -- yeah well I'm curious. Curious. That the bank -- dictating these type of compensation. Whereas a compensation committee where is supported directed every one of those Cecil B should be sue. -- lack of due diligence. I don't understand it I'm glad that that the government is stepping -- is sitting at ten million dollar job you know -- if you tell these bastards. We're gonna catch a beta fight -- in this economy not one of them would leave that job."

" I'm not sure that's true now and again you're goers are subtly are leaving and I'm not holding him up as a prime example of executive -- brilliance but he's foregoing his entire salary for 2009 -- leave and I'm not deal with this crap anymore they want to buy Lehman they don't wanted to buy Lehman he's got to do this is gonna do that they can't make up their -- Donald Washington Jim I don't wanna lose the main point -- of it's a great point to Gary shareholder and you've got to write ourselves and Jim -- talks -- OK whoever the with the previous scholar. And his shareholders got a right BP -- about this. And go to the shareholders meeting in write your congressmen and make sure that there is pressure to make sure the compensation committee is no wonder in the satchel with the way the event for a long long time on -- that."

" While -- trend that's the trouble is how do we make the companies be responsible. How do we make Wall Street in general not be so ridiculous with the compensation they -- while people. Are out there screw on the company's up. You know that's really not sure the problem historic behavior if they don't worry is good at their jobs is they're supposed to be then maybe you wouldn't matter they they get they get away with the -- visited three years. Let's go to gymnasts on WRQ hi Jim."

" I guys did you I don't know comment they'll like these companies like AIG would not be I at least not companies that -- PP yes government had to bail out. -- say that yeah slowly yeah all these companies are billed as you write what will likely I think that makes all the difference in the world because she's okay. If they're confident the government had not bankroll them bail them out. Then you know I would agree with both the view it would be not a might damn business what these men and women make however once. Once we're using public funds. Two weapons salvage these companies -- the government unfortunately. Has a vested interest of what people were."

" Lastly I agree with you on this Jim of the concern though that I did my caveat on it is I would assume the most likely scenario is. The government pokes his nose in it makes things worse."

" Well I'm not so sure I agree with you want Matt --"