David in NYC

Why Capping Pay Is Likely to Work

" Removing all employee incentives will produce corresponding behavior. "

Exactly, this is what we want. Removal of incentives to push toxic products in order to line their bank accounts.

If these executives can make more money doing something else, then let them. Where are they going to find a financial company willing to pay them more? Almost all financial companies are completely insolvent, and are bringing the rest of the country down. Remember, that these executives were the same ones which, because of bonuses, were able to LOSE money for shareholders over the last 10 years. So tell me, if you think these guys are so talented, what exactly are there talents? Yes, they work 24 hrs per day, yes they have a mastery of financial methods, and the sum of it is that they've destroyed wealth on a net basis in this country.

So, yes, an average person on the street with no financial education could do better than the CEOs right now. At least if you do nothing, you don't lose money.