US treasury secretary rejects limits on executive pay

Timothy Geithner, US treasury secretary, said on Monday he opposes caps on executive pay in companies receiving bailouts from the federal government under the Troubled Asset Relief Program (TARP).

Geithner, speaking at a live broadcast interview hosted by Newsweek, made a number of notable remarks, including the claim that the economy has “clearly stabilized” despite the daily growth of unemployment and other indices of social distress. However, his comments on executive compensation stood out most of all.

Geithner, who said he received a “generous salary appropriate for a public servant,” was asked if “it would be a reasonable proposal that companies receiving TARP money should [have their executive pay] capped at what the secretary of the treasury makes?"