Politically imposed CEO pay limits are “one of the most penny-wise and pound-foolish things” the “turkeys in Congress” are looking to impose in the bailout package, Thomas Sowell writes in the National Review. It’s a bargain to get a CEO “out the door immediately for millions” rather than pay billions in bad decisions.
Even if the CEOs of financial institutions worked for free, the savings wouldn’t amount to 1% of the bailout cost. But “people who say that they cannot understand how CEOs in general get so many millions of dollars seem not to realize what a trivial thing they are saying,” Sowell steams. “Most people do not understand most things. But that is no reason to have national policy guided by their ignorance.”