Obama Cuts Bailout Executives Paychecks

Washington President Obama announced new rules Wednesday morning; rules that will reduce the pay some of corporate America's top leaders.

There was nothing subtle about Obama's remarks on the state of the economy. Part of the blame for the current economic crisis was put at the foot of Wall Street executives. And Wednesday, the president gave them a pay cut.

Under the plan, executive's at the most vulnerable companies receiving the lion's share of the federal bailout money will have their salaries capped at $500,000 dollars a year. And they won't get bonuses above their annual pay, except for normal stock dividends.

Obama's new executive pay rules come as congress prepares to vote on the release of the second half of the tarp money. At the same time, he's been working overtime trying to gin up Republican support for his near-trillion-dollar stimulus package.

"The American people are beginning to figure out what this package is. That it's not a stimulus package, it's a spending package," said Senator John McCain (R) Arizona.

But a group of mayors from around the country gathered in Washington Wednesday with a unified message to congress; get behind the bill so people can get back to work.

The president is expected to meet with three moderate senators Wednesday; Democrat Ben Nelson of Nebraska, and Republican Senators Susan Collins and Olympia Snowe, both of Maine. He'll meet with them individually to try to find a compromise that will push the stimulus through.


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