Executives at companies that receive federal bailout money could soon face a $500,000 salary cap under a plan released this week by the Obama administration.
But at least one critic says the federal government shouldn’t stop there.
Paul Streckfus, editor of the subscriber-only newsletter EO Tax Journal, writes today that top officials at nonprofit organizations should be subject to the same pay limits.
“Why not impose a $500,000 salary cap on organizations that get the benefit of tax exemption and tax-deductible contributions?” Mr. Strekfus asks. “A few executives might flee to the for-profit sector, but I foresee no great difficulty in replacing them with equally-qualified individuals.”
Mr. Streckfus does note that such limits would probably hurt colleges and universities that hire big-name football and basketball coaches.
But he quickly dismisses that concern: “Somehow I think Duke could survive without Coach K,” he writes, referring to the Duke University men’s basketball coach Mike Krzyzewski.
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