Obama requires that CEOs of companies receiving bailout money may not receive ridiculous compensation

"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis is not only in bad taste, it's a bad strategy - and I will not tolerate it as president," Obama said. "We're going to be demanding some restraint in exchange for federal aid, so that when firms seek new federal dollars, we won't find them up to the same old tricks."

Right on. CEO Compensation has been out of touch with company performance for a long time. If we have to bail you guys out of the crapper, you better be tightening your own belt first.

Opposition to the compensation cap has focused on the idea that without major compensation, the "top management" players won't seek jobs at these companies. Juan Cole has it exactly right, once again:

Uh, wasn't it those geniuses, the 'top management talent' making $20 million a year who ran those companies into the ground in the first place?

Tell you what, just promote a good middle manager who had been making $100,000 a year, and she or he will be very grateful for the job.