Oh, the indescribable pain

Bloomberg.com: News

Paulson, 62, will bar companies participating in the stock-purchase program and Treasury purchases of toxic bank assets from offering so-called golden parachutes. Severance of more than three times an executive’s base pay won’t be tax-deductible for the company, and the recipient will be subject to an extra 20 percent tax on the money, according to the Treasury.

First, high salaries won’t be tax-deductible to the corporation (big whoop for the ones who have lost a few billion lately), and now the recipient of a golden parachute will have to pay a whole 20% surcharge? It’s a good thing none of these companies have the standard executive-compensation boilerplate that commits them to increase any amount paid to cover additional taxes.

Oh, wait.

Nonvoting stock, no seat on the board, no dilution, and they still say we should be grateful the banks “accepted” our free money. No wonder the market is still tanking.


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