Welcome to The Machine

[Gaspar]

Sneaky sneaky!

Not really, we knew it was coming. 

In a little-noticed move, the House Financial Services Committee, led by chairman Barney Fudd, has approved a wonderful new measure, that I'm sure every American will rejoice over.

The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees -- not just top executives -- of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies.

If your company has received any government investment, you may now work for the government.  The bill passed the Financial Services Committee last week, 38 to 22, on a nearly party-line vote.

My wife's company is funded with government educational grants, so I guess the administration will be taking over soon.

Probably a good idea to stay away from government stimulus work.

[guido911]

Here's a link to a story about this I saw on Drudge:

http://www.washingtonexaminer.com/politics/Beyond-AIG-A-Bill-to-let-Big-Government-Set-Your-Salary-42158597.html

Hey Gas, wasn't it you who criticized me for posting stories I saw on Drudge because everyone can get to it? 

Back on topic. Are you surprised by this development? I'm not. Just waiting to see those NBC folks like Leno, Brian Williams, and Olberdoosh having their salaries capped.

[Gaspar]

Here's a link to a story about this I saw on Drudge:

http://www.washingtonexaminer.com/politics/Beyond-AIG-A-Bill-to-let-Big-Government-Set-Your-Salary-42158597.html

Hey Gas, wasn't it you who criticized me for posting stories I saw on Drudge because everyone can get to it? 

Back on topic. Are you surprised by this development? I'm not. Just waiting to see those NBC folks like Leno, Brian Williams, and Olberdoosh having their salaries capped.

Not criticism, just fatigue. 

It's going to take some time for this to sink in with some people.  If your company accepts a job as a contractor on a stimulus backed project, you effectively hand over control of your company to the federal government.  I have no doubt this will skate silently through the house, unless people take issue with it now. 

I fear most of us are sleeping.

[Conan71]

What bothers me the most is that comments out of the left leaning types seem to accept and expect this transfer of power from the private sector to the government.  I don't know if a lot of people are glib or if we really have reached a point of throwing our hands up and allowing the governement to call ALL the shots now.

[we vs us]

Keep your shorts on, everybody.  Contrary to what Gassy says, this will not effect Everybody Everywhere Who Works With The Government, The Stimulus, or That Damned Socialist President Obama, The Guy Who Wants To Sap Our Precious Bodily Fluids.  To whit:

(1) PROHIBITION- No financial institution that has received or receives a capital investment under this title, or with respect to the Federal National Mortgage Association, the Federal Home Loan Montage Corporation, or a Federal home loan bank, under the amendments made by section 1117 of the Housing and Economic Recovery Act of 2008, may, while that capital investment remains outstanding, make a compensation payment to any executive or employee under any pre-existing compensation arrangement, or enter into a new compensation payment arrangement, if such compensation payment or compensation payment arrangement--

It limits compensation to financial institutions and loan outfits who're on the dole, as well as Fannie and Freddie Mac, and that's it.  If you're a contractor wanting to taste the sweet sweet honey of the Stimulus Package, well, you're free and clear to pay your executives whatever you want. 

Full text of the bill here.

[Gaspar]

Yes WeVs  your citation from OpenCongress (the sunlight foundation) was the bill Introduced.  The bill Reported has several changes.  They have set compensation in section (3):

             `(3) REPORTING REQUIREMENT-

                  `(A) IN GENERAL- Any financial institution that is subject to the requirements of paragraph (1) shall, not later than 90 days after the date of enactment of this subsection and annually on March 31 each year thereafter, transmit to the Secretary, who shall make a report which states how many persons (officers, directors, and employees) received or will receive total compensation in that fiscal year in each of the following amounts:

                        `(i) over $500,000;

                        `(ii) over $1,000,000;

                        `(iii) over $2,000,000;

                        `(iv) over $3,000,000; and

                        `(v) over $5,000,000.

                  The report shall distinguish amounts the institution considers to be a bonus and the reason for such distinction. The name or identity of persons receiving compensation in such amounts shall not be required in such reports. The Secretary shall make such reports available on the Internet. Any financial institution subject to this paragraph shall issue a retrospective annual report for 2008 and both a prospective and retrospective annual report for each subsequent calendar year until such institution ceases to be subject to this paragraph.

                  `(B) TOTAL COMPENSATION DEFINED- For purposes of this paragraph, the term `total compensation' includes all cash payments (including without limitation salary, bonus, retention payments), all transfers of property, stock options, sales of stock, and all contributions by the company (or its affiliates) for that person's benefit.'.

And the discussion is open to strike the limitation of the bill to financial institutions, but to extend it to paid to employees of companies in whom the government has a capital stake.

How do you think this is going to pan out?  Of course they are going to extend their power to any company receiving government funding.

[Ed W]

When did NBC start taking stimulus money, and is it now a financial institution? 

[guido911]

When did NBC start taking stimulus money, and is it now a financial institution? 

Here ya go smart guy:

GE Capital took $140B in bailout money:

http://seekingalpha.com/article/105984-general-electric-gets-a-140b-bailout-what-s-the-point-of-aaa

GE owns NBC:

http://www.cnbc.com/id/18351850/

[nathanm]

Here ya go smart guy:

GE Capital took $140B in bailout money:

GE Capital is a subsidiary of GE, not GE. Even so, I have little problem with this given that it applies only to businesses that have asked the government to purchase a capital stake in them, not companies that are paid by the government for services or that receive operational grants, just ones partly owned by the government.

Funny how Gaspar deliberately misread the quotation he posted to make it seem like this is more far reaching than it is and you went along with it. Especially since the reality of the situation was in his post, plain as day.

[guido911]

GE Capital is a subsidiary of GE, not GE. Even so, I have little problem with this given that it applies only to businesses that have asked the government to purchase a capital stake in them, not companies that are paid by the government for services or that receive operational grants, just ones partly owned by the government.

Funny how Gaspar deliberately misread the quotation he posted to make it seem like this is more far reaching than it is and you went along with it. Especially since the reality of the situation was in his post, plain as day.

I wasn't going along with anyone. I just provided a link to a story and took a shot at NBC. If you recall, I made a similar statement about high earning NBC employees a couple of weeks ago in connection with the executive pay caps issue.

Notwithstanding, is Congress or the Obama administration going to become a "super" human resources department and set salaries for all employees impacted by the proposed statute?

[FOTD]

GECC is just as awful as Gold Man Sacks....

The reporters at NBC have pensions that depend on GE's success ....

Guido and Gas, the Devil agrees with some of this stuff you blow.

But you need to understand we got here asleep after 8 years...

Nationalization is difficult to digest when you've been fed fake capitalism all these years....