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...tiered program, with extra restrictions applied to basket cases like AIG, Citigroup and Bank of America, all of which tapped the federal till for hundreds of billions of dollars to recapitalize their broken balance sheets. In addition to the cash limit, the "maximum wage" plan allows companies to reward "senior management" - a complement of no fixed definition - with restricted stock, but it can only be cashed in after the government is paid back. There are also prohibitions against golden parachutes as well as a clawback provision - the company may reclaim that stock if its results subsequently tank - that can extend...

Author: /time Magazine | Title: Can Obama's Executive-Pay Limits Tame Wall Street? | 2/4/2009 | See Source »

President Barack Obama swung and missed with his first choice for Commerce Secretary, New Mexico Governor Bill Richardson, a Democratic stalwart who withdrew his candidacy amid a grand-jury investigation. If that selection was partly spurred by a desire to reward an influential campaign endorsement, Obama's second stab at filling the post looks like a nod to his campaign promise of bipartisan governance. On Feb. 3, Obama reached across the aisle to tap Judd Gregg, a three-term GOP Senator from New Hampshire who, if confirmed, would be the third Republican in the Obama Cabinet. But Obama's latest...

Author: /time Magazine | Title: Commerce Secretary Judd Gregg | 2/4/2009 | See Source »

...Vice President Biden, Secretary of the Interior Ken Salazar, and Secretary of State Hillary Clinton all resigned their Senate seats. Nepotism, political power plays, and outright corruption sullied the search for their replacements. This should come as no surprise, since gubernatorial appointments to Senate seats are fundamentally undemocratic. They reward famous names, connections, and fundraising ability while denying the citizens of a state the chance to decide who their senator will be. Instead of relying on this outdated process for selecting interim senators, special elections should be held in the case of an unexpected death or resignation...

Author: By Anthony P. Dedousis | Title: Amendment, Not Appointment | 2/3/2009 | See Source »

...code of conduct for the House of Lords states that members "must never accept any financial inducement as an incentive or reward for exercising parliamentary influence." But peers are unelected, don't receive a salary, and are free to pursue outside income; around 140 have "outside consultancies." There are few sanctions against peers who transgress the rules: they cannot be removed from the house, but merely "named and shamed." That, says Baroness Royall, the Labour leader of the Lords, is "bananas." It's hard to disagree. MPs convicted of criminal offenses or found to commit acts deemed improper...

Author: /time Magazine | Title: Lords for Hire? Scandal Rocks U.K. Parliament | 2/2/2009 | See Source »

...best test of any cash stimulus will be whether it makes sense on its merits. Obama's aides have already dropped a proposal to give businesses a $3,000 credit for every job they create - an invitation to game the system. But payroll-tax relief will reward work and put money in the hands of the people who need it most. And there's no time like the present...

Author: /time Magazine | Title: How to Spend a Trillion Dollars | 1/15/2009 | See Source »

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