So, the big news yesterday was that the Obama administration announced pay caps for companies that still have government money. Some conservatives immediately jumped in to say that the cuts would be an average of 90%. The news today is that executives are leaving these firms because they can’t accept the pay cut. Put in more concrete numbers:
At Bank of America, for instance, only 14 of the 25 highly paid executives remained by the time Feinberg announced his decision. Under his plan, compensation for the most highly paid employees at the bank would be a maximum of $9.9 million. The bank had sought permission to pay as much as $21 million, according to Treasury Department documents.
Yes, bankers are leaving because they are only making $10 million. From Instapundit (though his take is different).
