The Obama Administration has extensively used what is referred to as “Czars” to help manage various aspects of the government. The advantage for the President of the Czars is that they do not have to be approved by Congress or report to congressional committees. This is a convenient way for the President to appoint people into positions of power without having congressional oversight.
One of the positions amongst the approximately three dozen Czars that Obama has appointed is the “Pay Czar”. Currently, this position is held by Kenneth Feinberg whose job is to oversee the compensation packages for the most highly paid executives at seven firms. These companies are AIG, Bank of America, Citigroup, General Motors, GMAC Financial, Chrysler, and Chrysler Financial, firms that received government bailout money.
The fact that compensation needs to monitored for high paid executives at companies that that would have failed without the government bailouts indicates the lunacy of our current economy. Had the government not given these companies money we would not be arguing how much to pay their executives. That would have been monitored by the most efficient mechanism available; the market controlled by supply and demand. These failed companies would have either gone out of business or would have cut the pay of all employees, including the executives, until they again become successful. Read the rest of this entry »