Top executives at companies taking government money from the TARP will likely see their pay slips capped at $500,000 under a new initiative to be announced Wednesday by President Barack Obama. But one analyst told CNBC that the move could have a negative effect.
Limiting Executive Pay is a Bad Move
The consequences of setting tight limits on executive pay could be “a massive brain drain of senior talent from those companies that have taken TARP money to those companies that have not,” Donald Straszheim, managing principal at Straszheim Global Advisor, told CNBC.
Straszheim and James McCormack, MD & head of sovereign ratings at Fitch Ratings, discussed this and the bailout package.
Stimulus Plans will Buoy Markets
Worldwide government efforts to spur economic growth will benefit commodities and the infrastructure sector, says Stuart Shrimpton, director of Intelligent Investments. He shares his outlook with CNBC.
Protectionism Not the Way to Go
The world is in a synchronized recession, but it is important that countries do not take the protectionism route, warns Christoffer Moltke-Leth, head of sales trading, Asia Pacific at Saxo Capital Markets.
Adopt a Defensive Strategy
Bob Iaccino, senior market strategist at Regan Global Capital, says there are signs that show a market bottom is forming. He supports taking a defensive strategy in equities and explains why to CNBC.
Euro-Dollar May Tumble to $1.20
The euro-dollar could tumble as low as $1.20 in the next 12 months, predicts Jan Lambregts, Asia head of research at Rabobank International. He also previews the ECB's upcoming rate decision due Thursday.