Obama Salary Caps and Transparency
As we’ve written about a few times on the blog, the first few weeks of Obama’s presidency has included a number of interesting, job-related milestones. The most recent of these is Obama’s salary cap for those who received government bailout money. The cap is set at $500,000, and affects the executives at companies including Bank of America, CitiGroup, Chrysler and America Internal Group (AIG).
In addition to the salary caps, the new rules also provide greater transparency to the shareholders of these organizations as to how money is spent. This includes not only salary details of top officials, but also things such as holiday parties, office renovations and conferences and other events.
At Glassdoor, we applaud greater transparency and hope to see more related to compensation at all levels of the organization. In addition to today’s news, the Treasury department is also planning a conference on executive reform, where they will discuss the potential of creating compensation committees for all public financial institutions.
Will Obama help make transparency the wave of the future? We sure hope so! What do you think?