Is Ken Feinberg needlessly caving to AIG executives? Bloomberg reports that the White House pay czar will exempt some AIG employees from a $500,000 salary cap after at least five threatened to resign. Though many business writers have decried salary caps, the move casts doubt about whether Feinberg is willing to get tough with Wall Street--as many expected him to do when he began his executive pay crusade.
For commentary, Fox Business' Adam Shapiro beat finance bloggers to the punch, calling Feinberg's backpedaling into question:
"This argument that you can't get people to go to firms that have the TARP guidelines...not true." Relaying evidence from industry experts, Shapiro says plenty of highly skilled executives will work for bailed out firms because "long-term equity, undervalued stock is going to be worth a great deal."