The devil is in the details

This is not unexpected: Obama Calls for ‘Common Sense’ on Executive Pay - NYTimes.com. However, I'm not certain that they've fully thought this through.

Earlier I thought that the $500k cap would apply to top executives only (top 5, I thought it was), but the Times is reporting that no one at Citibank or Bank of America can be paid more than $500,000 unless the excess is paid in restricted stock (query: would that be currently taxable?). Even guys (and gals) who have been working strictly on commission. In other words, all the most talented people have to start looking for other jobs unless they can take a pay cut, but the less talented won't have to sacrifice. To each, according to his needs.

This is the another manifestation of the Ward Three mentality that David Brooks wrote about yesterday. That was one of his best columns in months.

Not clear to me that this is a winning formula. My father worked with a Smith Barney broker, with whom he was well satisfied, but that guy has already jumped ship. He must have seen the handwriting on the wall.