As the House and Senate begin debate on the proposed $700 billion rescue plan for embattled financial institutions on Wall Street, Seventh District Congressional Candidate Leonard Lance is calling on Congress to pass legislation to ensure that no taxpayer dollars are used for senior executive compensation - sometimes referred to as a "golden parachute."
"Given the serious economic straits we are currently in, I support congressional action on the Wall Street bailout plan," said Leonard Lance. "It is a necessary action to strengthen our economy and help save thousands of jobs right here in New Jersey. However, I am adamantly opposed to taxpayer-financed golden parachutes' that reward senior officers of failing companies. Congress must pass additional legislation that bans this practice and protects the taxpayers. In addition, Congress must have continuing oversight power of the situation; the Department of Treasury should not have carte blanche authority."
According to recent press reports, a number of Wall Street senior executives were highly compensated before their companies began failing including Bear Stearns CEO, ($35 million), Lehman Brothers CEO ($40 million) and AIG's CEO ($47 million).
"My call is simple. If you get a taxpayer bailout, you lose your golden parachute," Lance concluded.