Andrew Napolitano: Executive Salary Caps are Unconstitutional

http://online.wsj.com/article/SB123388405082355077.html

by kyochan • 17 years ago

4 9 17 years ago

online.wsj.com

aristus• 17 years ago

"We can presume that the senior executives of the banks that have received TARP funds who are paid more than $500,000 annually are worth at least that much to their employers. Otherwise the employers would be violating their fiduciary duties to their shareholders by paying those salaries."

We certainly can't presume that. These executives are their own employers, sit on each other's boards and grant themselves billions of dollars in cash and stock. That's part of the problem.

Tangurena• 17 years ago

If they don't like the caps, then don't take the bailout money.

kyochan4• 17 years ago

Your argument is the same as "if they have nothing to hide, then they have nothing to worry about"

The point Napolitano is making that is unconstitutional for the government to ask an entity to surrender his constitutional rights in exchange for funding.

Just like the government cannot abridge free speech of welfare recipients or PBS.

eli3• 17 years ago

I disagree on both counts. Free Speech is pretty clearly in the Constitution, but which part of the Constitution protects my rights to get paid without limit?

It seems not unlike a bank granting you a loan, but only if you use the money for home repair.

eli3• 17 years ago

I mean, imagine if the private sector ran like this with VCs attaching requirements to how their money is spent! It could never work!

Andrew Napolitano: Executive Salary Caps are Unconstitutional

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