Bush was for controlling exorbitant executive salaries—before he was against it

One of the tenets of Working for US PAC is to insure sound corporate governance.  That's not happening in America today when executive salaries are spiraling out-of-control.  Even President Bush took notice of that trend -- and it appeared we had something in common with the President.  On January 31, 2007, George Bush railed against excessive compensation for corporate executives:

In his “State of the Economy” speech today, delivered from the financial center of the world, President Bush aimed at bringing his economic message out of the shadows of the Iraq war. On his second day in a row he focused on the economy, the government reported faster-than-expected growth of 3.5 percent in the final quarter of last year.

In his address, Bush took aim Wednesday at lavish salaries and bonuses for corporate executives, standing on Wall Street to issue a sharp warning for corporate boards to “step up to their responsibilities” and tie compensation packages to performance.

But, no surprise, the President isn't working for us on this one.  Less then three months after that Wall Street speech, George Bush is opposed to legislation that will give shareholders the power to control those salaries:

The Bush administration is opposing a bill before the House, pushed by Democrats, to give shareholders at public companies a formal say in executives’ compensation packages.

The legislation, written by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, comes at a time of growing public and shareholder anger over lavish compensation for executives unrelated to their performance. It would give shareholders a chance to cast an advisory vote on executive pay plans, allowing them to show their approval or disapproval of them.

Investor advocates, union pension funds and shareholder groups have been pushing for such “say on pay” votes as the chasm between executives’ salaries and the pay of rank-and-file employees continues to widen.

 

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