I'm skeptical that limits on executive compenstaion will be real.

[Eric J in MN]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIjxa0Ou4bRs&refer=home

Treasury Secretary Henry Paulson, reversing his position, said he would accept limits on executive compensation in his proposed $700 billion rescue plan for the banking industry after an outcry from lawmakers.

``The American people are angry about executive compensation and rightfully so,'' Paulson told the House Financial Services Committee today, departing from his prepared remarks. ``We must find a way to address this in the legislation, but without undermining the effectiveness of this program.

What is going to stop two corporations from each paying the other's CEO millions-per-year?

Unless Congress sets a tax-rate of 100% on all executive salaries/capital gains above $400,000 who work at corporations which accept the bailout, the limit on executive compensation will be evaded.