Salary Caps

10/23/2009

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Story Published: Oct 26, 2009 at 12:56 PM EDT

Story Updated: Oct 26, 2009 at 12:56 PM EDT

Many company executives may soon notice something missing from their paychecks. GM leaders are among those who could see their salaries slashed by as much as 90%. President Obama is pushing a measure that would cut the pay of executives of companies that accepted bailout loans. That's not surprising to a Birmingham industry analyst.

VAN CONWAY
CONWAY, MACKENZIE & DUNLEAVY
"The biggest lesson is the money does the talking. The money carries the vote. When you have to take money from a third party, money you didn't want to take from others, they're going to dictate terms. That's the way it's done."

Salaries could be capped at half a million dollars, and reducing compensation by half. The concern is the President's action could scare away potential employees.

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