After the increasingly strong populist backlash against skyrocketing corporate executive salaries, the White House considered implementing some rules. The administration said Wednesday however, that it will not directly impose pay limits on private corporations, which it feels is outside of its jurisdiction. The White House does plan to require companies to have neutral pay committees. It has also temporarily set limits for those companies receiving assistance under the $700 billion bailout, including AIG, GM, and Bank of America. Companies supported by the bailout must limit executive bonuses and answer to a soon-to-be-appointed White House 'pay overseer' who will have the power to veto overly generous pay plans. The plan hopes to encourage companies to reward long-term agendas over short-term gains.
See "White House won't try to directly limit exec pay", msnbc.com, June 9, 2009