Obama mishandled Wall Street pay issue

A clear majority apparently agree that Wall Street executive pay is excessive, if not obscene. President Obama's $500,000 cap both fails to address the problem and lets the culprits off the hook. Some companies, led by recipients of the imposed wage cut, may now refuse government aide, which will undercut the stimulus package.

Instead of unilaterally announcing the pay cap, the president should have required (on penalty of losing the government subsidy) 15 of the Wall Street head honchos to meet in person and agree upon, sign, and deliver in a public statement within 48 hours a compensation package they believe is justifiable today. If a CEO refused to participate, no federal aide and they handle their shareholder litigation. Very simple.

The President and legislative leaders could then have decided whether to accept the CEO recommendation or impose one. This solution appropriately would have subjected the 15 CEOs to the worst 48 hours of their lives by requiring them to really confront both the public and themselves with their avarice.

More importantly, a structure created by Wall Street executives would remove the claim of government interference and be more likely to change the Wall Street mind set.

The President's action will appeal to an angry and frightened public. However, it may also be an indication of a president with high intellect and exceptional oratory skills but who lacks the type of hard-nosed experience to understand how to effectively deal with the likes of Wall Street leaders and their egos. What does this tell us about his ability to deal effectively with Iran, North Korea and Russia?

Donald V. Jernberg

Arlington Heights