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...clear what sorts of limits on executive compensation will be included in the bailout bill. Ideas being batted around include a temporary elimination of golden parachutes (payouts that executives collect when they lose their jobs); a lower limit on the amount of an executive's base salary that companies can deduct from their taxes (currently $1 million); "clawback" provisions to help recoup bonuses paid based on earnings or other metrics that later prove to be inaccurate; and limits on incentives for "excessive" risk-taking...

Author: /time Magazine | Title: Do Caps on Executive Compensation Really Work? | 9/25/2008 | See Source »

...Congress should be the first to know that dictating what executives can get paid doesn't always work as expected. In 1984, Congress passed a law eliminating the tax deductibility of golden parachutes that exceeded three times base salary. Corporate America took that to mean anything below that multiple was fine: golden parachutes worth 2.99 times base salary proliferated, where before there were none at all. In 1993, Congress said only $1 million of an executive's salary would be tax deductible. So companies began paying their CEOs massive amounts in other forms, like stock options and deferred compensation...

Author: /time Magazine | Title: Do Caps on Executive Compensation Really Work? | 9/25/2008 | See Source »

...remember how it used to be, in those golden, Unabomber days. If your name was on a building, or if you were poor but knew an oarsman from a coxswain, you were in—as long as you were a white male without a “problem name.” Sure, we’ve been knocking down barriers like it’s going out of style ever since, but this is a slippery SAT II slope you’re skipping down. Know where it ends? Sex weeks, Richard Alpert, and lecturers who grade with...

Author: By James M. Larkin | Title: From a Future Freshman | 9/24/2008 | See Source »

...encourage executives to get their cooperation, and that clamping down on their pay would only hurt their willingness to get on board. Critics in both parties say the threat of the executives' firms going belly-up should ensure their cooperation regardless of what restrictions are placed on their once golden parachutes. Mounting pressure from constituents on Main Street is likely to mean there will be some cap on compensation associated with the bailout. But corporate America usually finds a way around such limitations, and there are even legal questions about what kind of restrictions can be placed on the firms...

Author: /time Magazine | Title: 7 Questions About the $700 Billion Bailout | 9/24/2008 | See Source »

...that are simply manufactured in production facilities by an army of studio assistants? I think Lacayo's term "product lines on canvas" says it all. Welcome to the Wal-Mart of art. I find it strange that however closely I look at the photo of his new work The Golden Calf, I can't quite see the heap of gold-plated manure beneath the bull. Kevin Wooldridge, MIDDLESEX, ENGLAND...

Author: /time Magazine | Title: Introducing Sarah Palin | 9/22/2008 | See Source »

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