Wendy Sherman: “I am all for the private sector paying executives whatever the private sector wants to, but it is very different when…”

“I am all for the private sector paying executives whatever the private sector wants to, but it is very different when the so-called private sector firms, the firms that demand hundreds of billions of dollars in Federal funds, decide that they want to pay executives lavish salaries and enormous bonuses. That is why I have come to this floor often to talk about the executive compensation of those firms that have benefited from the $700 billion bailout also known as the TARP. Why is this executive compensation issue important for those companies that have received TARP funds? First, because of fairness. Executives who have driven their companies into the ditch so badly that they need a Federal bailout shouldn't be receiving enormous salaries. Second, our constituents demand it. And if you don't think they demand it, see what happens when the administration comes, having gotten the second $350 billion and asks for another one-half trillion dollars, a third installment on the TARP. We will hear from our constituents. Third, the law we passed demands that there be reasonable standards of executive compensation at every company that receives TARP funds.”