Geithner Says We Shouldn't Cap Executive Pay

Treasury Secretary Timothy Geithner said on Monday that the government has no plans to cap compensation on Wall Street.


"I don't think our government should set caps on compensation," Geithner told Newsweek's John Meacham during a live interview at the National Press Club. But Geithner acknowledged that pay structures on Wall Street contributed to the financial collapse.

"You had a crisis magnified by the fact people were paid to take a certain amount of risks," Geithner said. He suggested possible measures that could rein-in excessive risk-taking, such as giving shareholders a "say on pay" vote and increasing disclosure requirements.

Geithner denied that the Treasury is sputtering in its lead role in the economic recovery and pointed to gains in the stock market as proof of the effectiveness of his policies.

"I think we're doing quite well in terms of speed and quality of policy," Geithner said. "Things that normally take years we're doing very very quickly."

The Washington Post reported on Monday that key decisions are going unmade at the department, partly because many positions remain vacant, leaving management "dominated by a small band of Geithner's counselors who coordinate rescue initiatives but lack formal authority to make decisions."

#story_page_ below_article

Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal

Don't Sit on the Sidelines of History. Join Alternet All Access and Go Ad-Free. Support Honest Journalism.