White House Caves on Golden Parachutes

Paulson bows to pressure from lawmakers opposed to bailout paydays for CEOs
By Newser Editors and Wire Services
Posted Sep 24, 2008 3:40 PM CDT
The Bush administration is bowing to pressure from lawmakers against "golden parachutes" in the proposed bailout.   (AP Photo/Charles Dharapak)
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(Newser) – The White House bowed on a crucial change in the $700 billion bailout today ahead of a speech tonight in which President Bush hopes to pull loudly resistant lawmakers on board. Republican officials said Henry Paulson agreed to demands from critics in both parties to limit the “golden parachute” money for executives whose companies could benefit from the proposed bailout.

That has been an emotional sticking point in the struggle to win congressional approval of the historic rescue of the financial industry, though the money involved with the pay packages would be relatively insignificant compared with the huge sums being talked about.