Treasury Secretary Hank Paulson has discarded his opposition to an executive compensation cap in the bailout, a significant concession with as-yet unknown implications.
“The American people are angry about executive compensation, and rightfully so,” he said. “Many of you cite this as a serious problem, and I agree. We must find a way to address this in legislation without undermining the effectiveness of the program.”
Paulson believes too-stringent compensation limits will discourage institutions from using the bailout, diluting its systemic impact.
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