Two Idiots Discussing the Compensation

CAVUTO: All right. Let's talk a little bit about where you are today.
You're in what they call "the land of the fat cats," the middle of Wall Street.
(LAUGHTER)
CAVUTO: Salaries among the top five brokerage chairmen, Mr. President, were, combined, close to $300 million.
BUSH: Yes.
CAVUTO: There is an effort on Capitol Hill, as you know, to rein that in and to maybe even partly legislate it.
What do you think of that?
BUSH: Oh, I don't think the government should be deciding salaries of CEOs, or anybody else that works for corporate America.
I do believe the role of the government is to promote transparency, so that shareholders will know the compensation packages of the executives that have been hired. And I strongly believe that the role of the CEO ought to be to enhance shareholder value. And that's what packages ought to be based upon.
CAVUTO: But, increasingly, these days, Democrats claim that they're not. And they point to Bob Nardelli, the former head of Home Depot, who leaves with a $200 million-plus exit package.
Is that fair?
BUSH: Oh I think — to me, it's up to the board of directors of American companies to regulate and to make decisions on behalf of the shareholders. That's — that's why boards of directors exist.
It'd be a — it's a big mistake if Congress ever gets in the business of deciding the salary level or the compensation levels of executives, corporate executives. What — but there is a role for the federal government, and that is to promote transparency. And, when somebody opens up an annual report, the description of the compensation package ought to be clear and easy to understand.
CAVUTO: But what happens — Democrats, like Barney Frank, for example, in the House, says: All right, either make the boards forcibly more accountable, and, if they don't do the job, make Congress make them more accountable.
BUSH: Well, one of the benefits of having an — a capitalist system, where there are shareholders, is that the shareholders should have responsibility and take responsibility seriously about holding their boards to account.
Corporate governance, it's — in order for the system to function well, there needs to be good, sound corporate governance. And, I believe, once Congress decides they're in the business of corporate governance, it will make — it will make it harder for us to grow our economy.