Showing posts with label BUREAUCRATIC POWER GRAB. Show all posts
Showing posts with label BUREAUCRATIC POWER GRAB. Show all posts

Thursday, August 13, 2009

Why Is Axelrod Sending Them E-Mails? What is ‘The List’ and Who Is On It? - Updated


Major Garrett received several emails asking him why they would be receiving emails from Axelrod at the White House when they had never contacted the White House, and could he ask about it. When Garrett questioned Robert Gibbs, Gibbs became exceedingly agitated and said he would have to have a copy of the emails in question to see if the people were on “the list”?!?

For any of you still doubtful that Team Obama has a greater agenda and uses Big Brother tactics, perhaps this will be one of those… “I should have had V-8 moments?”

Obviously ‘the fears’ that the White House was going to be creating enemies' and other lists from the information provided them and of the providers have already reared their ugly heads… what has it been a week?

Major Garret is checking with the people who provided him the emails to see if it was okay with them to turn over their emails to Robert Gibbs and Team Obama. Guess if Axelrod already has them, it probably won’t matter. Although Garret noted that now that the cameras are off, Robert Gibbs is no longer as interested in the emails or dealing with Garrett. Hmmm… Are we surprised?

Is Big Brother Watching You??

A photo composite of Linda Douglass, David Axelrod and Robert Gibbs.

Linda Douglass, David Axelrod and Robert Gibbs are key players in the new offensive.


Yesterday Robert Gibbs said, "Give me the email addresses of the people who sent you their emails and questions of why they got messages from David Axelrod..."; there are hundreds and many have now given Major Garrett their permission to give the White House their emails to check this out.

Major has made attempts throught the day today and yesterday afternoon to give Robert Gibbs the information to get an answer and Gibbs is avoiding him



Thursday, July 16, 2009

Glenn Beck: Healthcare or Freedom grab?

Call Congress Today and Tell Them “No” Healthcare Reform With A Public Option

Switchboard of the House of Representatives

  • 1-202-224-3121
  • 1-202-225-3121
  • (202) 225-0100 - Speaker of the House Pelosi

Speaker Nancy Pelosi
http://speaker.house.gov/contact or http://www.speaker.gov/contact
If the web contact form doesn't work, use this email address:
AmericanVoices@mail.house.gov

And Start Now to Lobby your Senators

United States Capitol switch board at (202) 224-3121

Senators from your State.

The media's saying the plan's going to cost $1 trillion over the next 10 years. By the way, you didn't know this was happening? Maybe this is the first time you heard it because they did this while you were asleep! Using the Congressional Budget Office's numbers, which seem like a lot for something that's supposed to be free ‑‑ but maybe that's just me ‑‑ $1 trillion for this free healthcare. But the problem is it's not even close to true. When you hear $1 trillion over 10 years, what do you think? What do you think? Do you think $100 billion a year, right? No. No, you've got to think like a congressman or a senator or a slime ball. That's what the left is hoping that you're thinking. It's actually far higher than that, and the reason is just like when you have liver failure on universal healthcare, most of the programs in the bill are on a long waiting list. But we are the world! We are the children! And Michael Jackson's dead. Should we talk about that some more?
The long waiting list of the programs in this bill, typical government delay. They don't actually kick in for a few years. Only 17% of the spending comes in in the first five years. 83% comes in in the second five years. So only 17% of us can have the frickin' sniffles! But once everything has kicked in, we're going to make the world a better place, just you and me. Once everything kicks in, the plan actually costs $230 billion a year, yet another lie from Washington. The cost rises every year.

Also, this cost of $230 billion a year does not include administrative costs. It doesn't account for the cost of implementing the program. It doesn't count the effects on other spending, not to mention the aspirin or the Advil that the millionaire won't give you now! So how do you pay for something that is so unbelievably free and yet so expensive? By using the only two answers these clowns ‑‑ I could call them so much more than that ‑‑ the only two answers that they ever have: One, you make the rich pay for it; and two, you let the government fix everything. Number one is, and I kid you not, an additional 5.4% surtax on everyone who makes over $1 million a year. Well, that's fine, the rich millionaire. You know, the guy who started out poor, worked his frickin' ass off. Yeah, let's penalize him so we can pay for the guy who refuses to work. Yeah, yeah, yeah, you know, the job that Americans just won't do.

There are other taxes as well, you know, for those who make between $350,000 and up. The 5.4% tax is almost double the original number leaked to the press last week and, of course, this hits the small businesses the hardest. If you are not feeling bad for the evil rich people, which I understand because they're all so evil, I had the president of my company. I am a small business owner. I employ 23 people, something like that, 20 people, 23 people. I have a total staff of part‑time and full‑time of about 45 people that we are involved with, but 23 full‑time employees. They all have 100% medical care, 100%. The best money can buy. I have matching. You make a charitable donation, I match it dollar for dollar. Everybody pretty much has a nice, nice existence. I asked the president of my company, do some back‑of‑the‑envelope math. This tax, just this tax by itself, completely independent of all other tax hikes that are coming our way, will stop me from hiring five and ten people. One tax on one small business cost between five and ten jobs. Think about that against the entire scale of the economy. You'll begin to see what this p lan is going to cost in free healthcare. The higher the tax, the less people get hired. The more people need government to give them healthcare or housing! This is a freedom grab!

By the way, the tax hikes only cover about half the plan. Half the plan. Wait a minute. Really? So what covers the rest of it? I kid you not, the expected ‑‑ I'm quoting ‑‑ the expected windfall savings that the government will achieve with government healthcare. Because we all know the government has a history of achieving unbelievable savings. I mean, there's no way the free market system could send an envelope across the country cheaper! There's no way they could do that! Jeez. If that plan, if you happen to be a hate monger and that plan sounds a little unlikely, you'll be interested to hear what the plan is if those savings don't materialize. But we, of course, know the government will save all kinds of money. This is going to be ‑‑ you are never going to have to have a heart transplant because as soon as this happens, our heart will grow three sizes that day. We'll all be super healthy. We'll just be living in sunshine, lollipops, candy contains and Tamiflu will flow in every river.

This is from the Politico report. If those savings don't materialize, quote, those making more than $1 million would see a 5.4% surtax added to the tax bill. Some of the rates could climb if anticipated savings from elsewhere in the bill did not materialize. So as long as the government does a far better job on anything else they've ever done, it should only be about 5.4% tax. If they can't, at this point they are claiming that it could go as high as double, so those five to ten jobs have now become ten to twenty jobs.

I just want to point out that there's no history of our government ever doing this. When they passed the income tax in 1913, the progressive income tax, Woodrow Wilson, they promised us it would never go as high as 10%. It was only 7% for the evil millionaires. 7%. It will never go past 10. Yeah, yeah. They passed it. Never go past 10. Four years later it was 67%. Oh, and by the way, it will never ‑‑ that was an emergency! And there's no more emergencies left. Just like ‑‑ 67%, but it was an emergency. It will never go higher than 60. It's just during the emergency, until the last emergency came or the next one where, I kid you not, the income tax was 92%.
FDR wanted to make it 100% of anybody who made over $25,000, but congress would only go to 94. Now, their other option that they talked about in the past is to pay for some of it with money that they take from you, if they can just get cap and trade. Mark my words. They are going to go for cap and trade. While we are all debating healthcare, they're going to go for cap and trade. Isn't that what happened last time? They introduce healthcare and then they pass cap and trade. Now here comes the healthcare bill. You see, they have to have cap and trade to be able to pass this. Remember, all of this is based on the idea that the evil insurance companies are just so profit‑hungry. The government can beat them in efficiency because they don't have to care about profits or paying CEOs millions of dollars. They won't have all of that greed.

If you take nothing else from this monologue, remember this one thing: Health insurance profits account for .6% of healthcare costs. .6%. That's not me saying that. That's factcheck.org. CEO pay accounts for .005% of costs. This is not about healthcare. It never has been about healthcare. This is about, what does he call it, remaking America. This is government taking control of 1/6th of the economy. In one signature they will take 1/6th of the economy. They will take your arteries, your valves and your pancreas. Yes, you heard me. Your pancreas is at stake. But don't worry because the government can save it, because there's a choice we're making. We are the world. Can I get an amen!

July 15, 2009 - 13:06 ET


Glenn Beck's Common Sense - Now available in book stores nationwide...

Source: GlennBeck.com

Posted: Daily Thought Pad

Saturday, July 11, 2009

Czar Watch! Are These People? | The FOX Nation Exclusive Video

24 Czrs Are Pictured Here... Latest Count is Closer to 34. Nobody Knows Who They Are: What They Do; And Why! The Circumvent the Checks and Balances Created by the Founding Fathers and Are Accountable to No One, But Obama... Scary?? Definitley!!!



Posted: Daily Thought Pad

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Wednesday, July 8, 2009

Stop New Bill (HR2749) Gives FDA Unheard-of Power over Small Farmers, Food and Supplement Producers

A new, long-awaited food safety bill is now before the US House of Representatives. It is the Food Safety Enhancement Act of 2009, or FSEA. Introduced by Reps. Henry Waxman (D–CA) and John Dingell (D–MI), the FSEA is meant to address food safety concerns. But as you will see, much of it is not about food safety at all. Food safety issues have arisen from large agricultural operations. But this bill places its harshest burdens on small food producers and supplement producers.

Take Action and let your Representative know you DO NOT support this bill

The Food Safety Enhancement Act:

  • gives the US Food and Drug Administration (FDA) unprecedented scope, authority, and power over small farmers, food producers, and supplement producers, including the power to use vague language to intimidate and threaten;
  • imposes unjustifiably harsh criminal and civil penalties for even administrative violations; and
  • places undue economic hardship on small and mid-sized farms and food facilities (both organic and conventional), which could easily drive many of them out of business, and lead to monopoly control of food by large corporations.

Also known as the Waxman–Dingell bill, the Food Safety Enhancement Act has a number of provisions that would directly affect many of AAHF’s members. Although much of the bill’s language is vague—and, some worry, deliberately deceptive—it is clear that the FSEA provides for the following:

Sharply increased criminal and civil penalties for violations of FDA regulations.
The penalties include prison terms of up to ten years (jail time is currently capped at three years), and fines of up to $100,000 for individuals and $7.5 million for corporations, regardless of their size. The kicker is that these penalties are potentially applicable no matter what way you violate the FDA’s rules.
The application of those penalties to any food, drug, device, or cosmetic that is knowingly "adulterated or misbranded."

To our ears, “adulterated” means that it doesn’t meet good manufacturing practices, that the food itself is somehow tainted or injurious to health, or contains an ingredient that presents a significant or unreasonable risk of illness. And “misbranded” suggests deliberate misstatements about the efficacy of a product.
In FDA-speak, however, these words take on completely different meanings. For example, a food or supplement may be “adulterated” if some vague FDA rule is deemed by the FDA not to have been followed. “Misbranded” can mean that the producer makes a completely true statement about the product but without FDA permission. A cherry producer who cites peer-reviewed scientific research from prestigious universities on the health benefits of cherries would, in FDA-speak, have engaged in “false” and actionable “misbranding” which suddenly turns the cherries into drugs. Producers, of course, have the right to take cherries through the new drug approval process! In this and other ways, the FDA already censors science and quashes constitutionally protected free speech.

In this new bill, any violation of the new administrative requirements could make a product adulterated and/or misbranded. That is, an administrative violation (such as not keeping records exactly as required) that harms no one carries exactly the same penalty as a violation in which a product is adulterated during the manufacturing process and poses a significant risk of illness or ends up killing people.
The dramatic increase in jail time and fines will make supplement production an even riskier proposition than it is today. Supplement producers have to put some information on the bottle. They try their best to satisfy FDA rules, which can only be described as gray, not black and white. Now if they get it wrong in the eyes of the FDA, the potential penalties will be extremely severe.

Many on Capitol Hill are under the impression that the bill pertains only to food, but the FSEA language specifically names supplements as well, and this will have a huge potential impact on any small company brave enough to continue their manufacture and sale.

Large companies will probably be unaffected because they can afford the extensive legal staff needed. Moreover, the FDA does not try to put large companies with political clout out of business, much less put their executives in jail. General Mills (the manufacturer of Cheerios) was recently cited by the FDA for an unapproved health claim, even though the company was reporting good science. Under the new bill, General Mills could be fined $7.5 million, but based on past FDA performance this would be unlikely. If a tiny company were cited, the exact same fine would be applicable and the likelihood of being exacted would be much greater.

FDA control of farming standards and practices
Many people on Capitol Hill seem to believe that farms are exempted from the FSEA’s scope. That is false. On the contrary: the bill would empower the FDA to regulate how crops are raised and harvested. It puts the FDA, which knows nothing about farming, right on the farm, dictating to our farmers. Specifically, it allows the FDA to set “scientific and risk-based standards” for the use of fertilizers, harvesting and processing methods, transportation, etc. Any non-compliance means the food is to be considered “adulterated” (with fines of up to $100,000 per individual and $7.5 million per corporation, and a jail term of up to ten years).

For example, based on both its public statements and its record, the FDA is vehemently opposed to the consumption of raw milk (even in cheese) and would like to ban its distribution. If HR2749 becomes law, the agency would have much greater scope to go after raw milk than it did before, particularly targeting raw milk producers whose products cross state lines.

Raw milk is just one example. The FDA can decide that it doesn’t like anything under this bill. And we can be sure that large producers will have easy access to the agency to explain why competing products from small producers should be banned.
Moreover, the bill would give the FDA the power to order a quarantine of a geographic area. Under this provision, farmers markets and local food sources could be shut down, even if they are not the source of the contamination. The agency could halt all movement of all food in that geographic area.

The language is incredibly vague and does not distinguish between industrial-sized operations, organic farms, or smaller operations—the FDA could easily use its new authority to set requirements that only large corporate farmers can meet. While farms are exempt from some sections of the FSEA legislation, they are explicitly included in this all-important section. Smaller farmers who can’t meet the new FDA requirements will simply go out of business, unfairly creating monopolies for the huge corporations. We believe the FDA should not have this kind of authority over farms at all, but this one-size-fits-all approach has significant economic implications and could destroy a sustainable farm trying to comply with an inappropriate commercial standard.

An unequal burden for smaller and local food facilities
A food facility—defined as any factory, warehouse, or establishment that manufactures, processes, packs, or holds food—must, under the new bill, register and pay an annual registration fee of $500 (and that fee would be adjusted upward with inflation). Although farms and restaurants are exempt, the agency has defined “farm” narrowly, and people making small batches of foods such as lacto-fermented vegetables, cheeses, or breads would be required to register and pay the fee, which could drive start-up and small producers out of business during difficult economic times. A flat fee that does not take into account the size of the facility is good news for giant agribusinesses, but may represent a serious economic burden for some smaller companies struggling to make ends meet. How could the FDA think that the same fee (and penalties) are as appropriate for Mom-and-Pop operations as for ConAgra?

Moreover, FSEA provides for mandated electronic registration, which may be an issue for smaller producers, and is certainly a problem for Amish farmers, for whom the electronic filing requirement violates their religious beliefs. Failing to register a food facility would constitute “misbranding”; violators—you guessed it—would be subject to fines of up to $100,000 if the business is individually owned, $7.5 million if corporately owned, and/or ten years in jail.
Warrantless searches by the FDA

Under the bill, the FDA will have full authority to conduct random, warrantless searches of all records dealing with any aspect of a company’s production, manufacture, or distribution process. Under current law, the FDA only has access to records if it has “a reasonable belief that an article of food is adulterated” and presents “a threat of serious adverse health consequences or death to humans or animals.” Under the FSEA, however, the FDA has access to all records, at any time, and without any evidence whatsoever that there has been a violation. Warrantless searches are a powerful weapon of intimidation and harassment.

The bill also extends FDA’s authority to access records of a farm and restaurant—both of which are exempt from FDA’s reach under current law. Even farmers selling direct to consumers would have to provide the federal government with records on where they buy supplies, how they raise their crops, and a list of their customers.

The FSEA also gives the FDA complete control over recalls, seizures, detentions and quarantines—with no judicial oversight. For example, FSEA lowers the standard FDA must meet in order to conduct an administrative detention. Currently they must demonstrate “credible evidence” that a food presents a health threat before an administrative detention is allowed; the FSEA standard is “any reason to believe that an article of food is adulterated, misbranded, or otherwise in violation of this Act.”

Burdensome administrative requirements, including a new food tracing system
The FSEA requires all facilities, farms, and restaurants to implement new hazard analysis and risk-based preventive controls, food safety plans, and an extensive record maintenance program—again, without taking into account the differences between small facilities and large commercial facilities.

The FSEA also mandates an extensive food tracing system for all farms, or facilities that produce, process, or transport food, even if the food does not cross state lines, though at least “direct sales by farms” (i.e., sales directly to stores, restaurants, or consumers) are exempt—which means that most vendors who participate in a farmer’s market would not be affected. Each person in the production, manufacturing, processing, packing, transportation, or storage chain must “maintain the full pedigree of the origin and previous distribution history of the food” and must “establish and maintain a system for tracing the food that is interoperable with the systems established and maintained by other such persons.”

The bill does not explain how far the traceback will extend or how it will be done for multi-ingredient foods. With all these ambiguities, it's far from clear how much it will cost either the farmers or the taxpayers. Small farms may find this trackback system costly and time-consuming.

If the FSEA passes, only big businesses and large corporate farms will matter
With FDA having such vast control, authority, and access, globalization and harmonization of food quality is a step closer. HR2749 does not make any allowances for small- to mid-sized farms or facilities, which could mean economic ruin, closure, or dependence on large corporations or foreign food supply sources.

Let’s say you’re a small organic farmer, and you have a roadside stand on your own property. If this bill passes, you would now have to follow federally established standards for growing your produce, or your food would be considered adulterated. You could not, of course, say anything about the scientific basis for organic produce being healthier than conventionally farmed produce.

Further, you would be required to make your business records available to FDA inspectors. The inspectors would have the power to show up unannounced without a warrant to search your records without any evidence whatsoever that you have committed a violation of the law. If you refuse to let the inspector see your records, you would be guilty of adulteration.

If you’re a farmer who sells products direct to consumers, you would be forced to give the FDA any customer information you have in your records. No more customer privacy. Should you refuse, you’d face up to ten years’ imprisonment. The civil fines could be up to $100,000 if you’re an individual or $7.5 million if you incorporated your family farm as a business.

There is one bright note in a rider to the bill: HR2749 at least imposes a deadline on the Secretary of Health and Human Services to notify Congress by December 31, 2009, of the final determination on the safety of BPA (Bisphenol A) in food and beverage containers.

Please take action immediately!

We need every concerned American to contact his or her congressional representatives immediately and ask that HR2749 be defeated or, at the very least, amended.

Click here to be taken to our Action Alert and contact your Representative!

1-202-224-3121 – House Switchboard

1-202-225-3121 – House Switchboard

(202) 225-0100 - Speaker of the House Pelosi


Speaker Nancy Pelosi
http://speaker.house.gov/contact or http://www.speaker.gov/contact

If the web contact form doesn't work, use this email address:
AmericanVoices@mail.house.gov

Source: True Health Is True Wealth /American Association for Health

"Control oil and you control nations; control food and you control the people." …Henry Kissenger

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Posted: Daily Thought Pad

Monday, July 6, 2009

Scientist: Global Warming Claims a Lot of Hype

(Photo: UCLA Shutterbug - New Hampshire Jan 2009)

Lawmakers who described the alleged effects of global warming are spreading a lot of "eye wash," a top climate scientist says.

In an exclusive interview with Newsmax, S. Fred Singer, a renowned climatologist and professor of environmental sciences emeritus at the University of Virginia, discussed the background behind the recent open letter to Congress he and six other scientists sent to members of the House and Senate.

In the letter, the scientists cited a letter sent by the Woods Hole Research Center, which exhorted Congress to act quickly to avoid a global disaster due to alleged global warming.

Singer said the Woods Hole group “put on a sort of scary exaggerated kind of letter to Congress ahead of the vote in the House in an obvious attempt to stampede them into voting for the Waxman-Markey [cap and trade environmental] bill.

Singer explained: “We thought it would be useful to write a letter that would provide a balance. The instigator of the letter was Harold Lewis, a retired professor of physics at the University of California in Santa Barbara.” Lewis, he said, “provided the initial draft, several of us made comments and seven of us signed our names to it."

Lewis sent the letter "to every member of Congress ... and it was also sent to a number of bloggers and others who are generally sympathetic" to the group’s point of view.

“The letter itself is self-explanatory,” Singer said, noting that it did not “give much detail."

“Two of us, Richard Lindzen and myself, are actively working on climate issues. The others are renowned physicists – people of some stature, members of the National Academy and others who have a good amount of scientific judgment but who have not directly published or been pre-eminent in climate research.”

Asked if it is not established that the earth is cooling, Singer explained that “The earth is either always warming or cooling; one cannot tell which it is unless one specifies the time interval.

“It's like the stock market: it is rising or falling. Both depend on whether it's a week or a month or a year. It's the same with the temperature – if we start during the last Ice Age 15,000 years ago, then the temperatures have warmed. If you start from the Little Ice Age, which ended 200 years ago, it certainly has warmed.

“If you start from 1998, however, then it has not warmed – it has cooled. So it depends on the time interval. People argue about this, and much of the difference between groups comes about when you don't specify the time interval. There's no question that the climate has not been warming in the last 10 years."

Reminded that there were members of Congress standing up in the debate and talking about the terrible things that are happening now as a result of global warming, Singer said: “That's all eye wash. That's not true. That's simply hype.”

He went on to explain that “Nothing untoward is happening. The ice is not melting any faster, the sea level is not rising any faster. Hurricanes are not increasing in intensity or frequency; there's been no impact. Those things are always hard to measure. It depends on statistics. The easiest thing is to specify temperature, because it's easily measured and there is relatively little disagreement on what temperature stands for.”

He then went on to challenge what he called former Vice President Al Gore’s “mantra” that he says Gore’s "been handing out for years now – that the science is settled. That is simply not true.

“When you have 31,000 scientists signing the Oregon petition saying they disagree with the current wisdom that humans are producing increased warming, it speaks for itself. It's true that the 31,000 are not all climate scientists. There are not that many in the world.

“However, it does show you that the science is not settled. Among climate scientists there is a split. There are those who believe in models, and those who believe in observations. And there are some who don't believe in both, and some who don't believe in any.

“The modelers believe that the models correctly describe what's going on in the atmosphere, and they trust their models to predict the future. And the models all predict increased global warming. Some more, some less. There are plenty models in the world, and they all get different results. We don't know which one of them is correct, if any, or even if any of them is correct.

Then there are those – sometimes called the skeptics, but we prefer to call them the realists – who believe in the observations, who believe that the atmosphere tells us what's going on. The models try to describe what's going on in the atmosphere, but they don't succeed. It's extremely difficult – the atmosphere is very complicated. For example, the models can't really describe clouds. Yet clouds are very, very important. So that's the basic split.

“When the observations show that the climate has not been warming in the last 10 years, which contradicts the models, who are you going to believe? The models or the observations. Obviously, we believe in the observations.

“When you ask the other side to debate on this issue they either won't debate; or if they do debate, they say, ‘Well there must be something wrong with the observations.'”

Singer agreed that it is a case of "do you believe what the models tell you, or do you believe in your lying eyes?"

Friday, July 3, 2009 10:17 PM
By: Phil Brennan - 2009 Newsmax

Posted: Daily Thought Pad

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Friday, June 12, 2009

Power Grab

Obama Govt Control

The Obama administration is engaged in the most sweeping power grab in modern American history, but few people seem to care. In barely four months, we've witnessed the president and his minions taking over insurance companies, banks, and car companies, forcing private companies to sell off assets, appease unions, and stiff bondholders. Administration officials have insisted some companies take government handouts even if they don't want them and told others they can't pay back the money they've borrowed until the government gives them permission. Now, the president has decided he'll appoint a "compensation czar" whose job it will be to decide what constitutes fair pay for corporate executives. Why stop there? And, of course, they won't.

The latest move -- the appointment of Washington lawyer Kenneth Feinberg to oversee pay of the top employees at seven companies that have taken government funds -- may not seem radical, but it is. Earlier this year, in response to public criticism of the retention bonuses paid to some executives at the troubled insurance giant AIG, the administration proposed capping executive pay at $500,000 at firms receiving government assistance through the Troubled Asset Relief Program. But Treasury Secretary Tim Geithner abandoned that plan when he finally figured out that the execs would simply bail on the company, leaving the government without experienced and talented hands on deck.

So now the administration is moving to Plan B: Forget about pay caps per se but appoint a government overseer to set pay individually. Until now, in publicly traded companies that job fell to the board of directors and its compensation committee, whose legal and fiduciary responsibilities entail acting on behalf of shareholders. Directors are elected by the people who own the company: from individuals who own a few shares of stock to institutions and mutual funds that may own millions of shares.

The government, primarily through the Securities and Exchange Commission, oversees the board's stewardship, while other entities play a role as well. The securities exchanges -- the New York Stock Exchange, NASDAQ, etc. -- also have rules that govern the conduct of boards of directors, including restrictions on who sets executive compensation. The compensation committee at publicly traded companies must be composed of entirely of independent directors -- those who have no direct ties to the company or its management either by current or, in certain instances, former employment, for example.

Compensation committees act independent of management, but they don't act in a vacuum. They often hire compensation consultants (who must have no ties to the company) to advise them on the best pay practices. They evaluate their pay structure compared to other companies of similar size and complexity or who are in the same line of business. They evaluate the performance of key executives against financial results, the achievement of personal and company objectives, and other criteria. It is a long and arduous process (I know, for more than a decade I've served on and now chair the compensation committee of a NYSE company).

And the rules governing disclosure of executive compensation have become much stricter in recent years, especially since the enactment of Sarbanes-Oxley, federal legislation that passed in the wake of Enron and other recent corporate scandals. The law now requires that, in addition to a Compensation Committee Report on executive pay, management must produce an extensive compensation discussion and analysis to be included in proxy statements sent to all shareholders. The information includes a table showing exactly how much the CEO, chief financial officer, and three highest-paid employees in the company earn, including bonuses, stock options and grants, and what benefits and perquisites they are entitled to and their cost. Similar information is provided for director compensation. If shareholders don't think they're getting their money's worth from these executives or directors, they can dump the board of directors at the next election. Or at least that's how it is supposed to work.

But enter the Obama administration to rewrite the already extensive rules. Now one man -- the compensation czar -- is going to oversee this process at seven major corporations. And who oversees him?

From the president on down, the Obama administration is filled with people who have little or no idea how the market works. Most have never drawn a paycheck in the private sector, much less had to meet a payroll or make a profit. But they're convinced they know how to run things, down to the last detail. There's no word adequate to describe the sheer arrogance of this group.

Linda Chavez :: Townhall.com Columnist by Linda Chavez - Chairman of the Center for Equal Opportunity and author of Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics

Source: Townhall.com

Posted: Daily Thought Pad

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