Waxman Calls For $2 Million Cap On CEO Pay

Rep. Henry Waxman is proposing a $2 million cap on pay for CEOs who benefit from proposed bailout legislation, the most specific proposal to date limiting the amount chief executives who benefit from the bailouts can recoup.

“No financial institution that gets federal relief should pay its CEO more than $2 million annually,” Waxman said in a statement Monday. “That’s over ten times what the Secretary of Treasury makes.”

It is unclear how Waxman will offer his proposal, although several other prominent Democrats have also called for limits on CEO compensation in recent days.

A California Democrat, Waxman said he has “serious reservations” about the administration’s bailout proposal. 

"The Administration’s plan completely eviscerates the concept of moral hazard," he said. "It would enrich the Wall Street executives whose reckless investments caused the financial crisis. The taxpayer is being asked to risk billions to protect the bonuses of investment bankers."

The chairman of the House Oversight and Government Reform Committee, Waxman also called for “greater financial transparency” on Wall Street and will chair hearings on the issue in the coming weeks.