President Barack Obama announced a new pay limit of $500,000 for top executives at firms receiving federal aid in the midst of the current economic crisis.
Adressing the nation from the White House Wednesday morning accompanied by Treasury secretary Timothy Geithner, Obama said his administration will do whatever it takes to restore the trust in the financial system.
[W]e believe that success should be rewarded. But what gets people upset - and rightfully so - are executives being rewarded for failure, Obama said today.
Last week, Obama reacted to a report stating that Wall Street executives had received billions of dollars in bonuses, saying the decisions to hand out the payments were the height of irresponsibility and shameful, given the current economic crisis.
Additional compensation for executives is still possible but only in restricted stock that will not vest until taxpayers have been paid back with interest. Also, companies will be required to provide an explanation about any perks executives receive and why they are justified, Obama said today.
The American people are carrying a huge burden as a result of this economic crisis, Obama added.