At Marginal Revolution, economist Alex Tabarrok has some unkind words for the Obama administration's decision to order massive executive pay cuts at firms that took TARP money:
There is no way this will work as advertised. If the administration actually follows through, most of these executives will quit and get higher paying jobs elsewhere. Executives not directly affected by the pay cuts will also quit when they see their prospects for future salary gains have been cut. Chaos will be created at these firms as top people leave in droves. Will the administration then order people back to work?