"I know no safe depository of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with a wholesome discretion, the remedy is not to take it from them, but to inform their discretion by education. This is the true corrective of abuses of constitutional power." - Thomas Jefferson 1820

"There is a growing technology of testing that permits us now to do in nanoseconds things that we shouldn't be doing at all." - Dr. Gerald Bracey author of Rotten Apples in Education

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Friday, December 3, 2010

Federal Pay Czar at Mizzou Business School: "Government Determination of Private Executive Pay"

I hope the press covers this talk today by Kenneth Feinberg, the Federal Pay Czar. He will be speaking at the University of Missouri's Business School. Check out the title of his speech:

The lecture by Ken Feinberg is entitled "'Government Determination of Private Executive Pay: Opportunities and Challenges." He is scheduled to speak at 11 a.m. December 3 at the University of Missouri's Trulaske School of Business.

I'm on the edge of my seat waiting to read the reports of Mr. Feinberg's determination on how the government has the legal authority to determine private executive pay. It will be interesting to discover if he speaks to regulating determination of executive pay solely to those companies receiving bailouts, or if he wants to see this applied to other private industries. Based on this NY Times piece from last year, this seems to be the underlying agenda of the administration and it will be carried out via the EPA method of doing business:

...the administration could seek to put the changes into effect through regulations rather than through legislation.

One proposal could impose greater requirements on company boards to tie executive compensation more closely to corporate performance and to take other steps to ensure that compensation was aligned with the financial interest of the company.

If the Business School wants to educate their students on good business practices and how to grow an economy, perhaps the School should ask Donald Trump or some other successful entrepreneur how to actually contribute to an economy, rather than listening to how the government can set your pay rate when you are employed in private industry. I'm sure the business students will aspire to an executive position that includes a salary capped by the government. That will certainly inspire innovation and the quest for excellence, right?

I have an idea. To offer a fair and balanced discussion to the business students, the school should offer "Government Determination of Private Executive Pay: Opportunities and Challenges: Why This is Constitutionally Illegal".

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