2008 Woodie Awards
Obama can set excellent example for CEOs by forgoing his salary
John C. Bersia
Issue date: 11/20/08 Section: Op/Ed
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Obama has no choice about the No. 1 priority, the economy, and he cannot avoid great expectations, however unrealistic those might be. Preoccupied with rising unemployment, business failures, the home-mortgage morass, tight credit and general uncertainty about the future, Americans want answers. And they have little patience.
Fortunately, opportunity knocks from the conversation on the most recently spotlighted ailing sector: the auto industry. Obama favors swift emergency help; I am certain that some kind of bailout will emerge. As I have said in the past, federal-government financial props for suffering businesses are hardly ideal, but the nation cannot afford to sit idly by as unusually turbulent circumstances ravage economic icons. It is essential, though, for Obama to set the tone for these and other debates about bailouts by underscoring his own commitment to cut spending and willingness to sacrifice. He should start by voluntarily reducing his own presidential salary.
Some have argued that Obama would ensure the greatest impact by entirely waiving his compensation for at least a year. Others, such as presidential-studies scholar Stephen Wayne of Georgetown University, contend that Obama is not really a rich man by today's standards. Thus, Wayne says, a partial reduction would be sufficient. Either way, Obama would provide a leadership path for others to follow. Indeed, should he agree to a salary reduction, he would be positioned to press the heads of businesses seeking government bailouts to cut their personal salaries by the same percentage. Not only would such a decision impress employees, shareholders and consumers, it would save jobs.
Wayne adds that Obama, in his inauguration speech, should include some of former President Franklin Delano Roosevelt's nothing-to-fear-but-fear-itself language. Although today's crisis falls well short of The Great Depression, Americans are no less in need of a remedy for their jittery nerves.
Beyond rhetoric, Obama should display his trademark can-do optimism by outlining ideas to stimulate the economy during the long term, including a strategy much bolder than any presented in the campaign to rebuild the "infrastructure of America." To me, that concept, broadly defined, means not only transportation systems, communications and public utilities but schools, military capabilities devoured by wars in Iraq and Afghanistan, and energy alternatives.
Viewing Comments 1 - 5 of 5
LisaP
Lisa P
posted 11/20/08 @ 12:49 AM EST
Of course leader must set a good example to his subordinates so that his action would be followed. Apparently, it wasn't enough to cover the mortgage crisis up with a TARP. (Continued…)
Elena
posted 11/20/08 @ 9:54 AM EST
I don't feel that President-Elect Obama should waive his salary. No other president before him has done so and no other president before him has been called to do so. (Continued…)
Obama-Mama
posted 11/20/08 @ 8:11 PM EST
Did you ever suggest Bush not get paid, even though his family is worth hundreds of millions? Or Cheney?
Good lord. Both Obamas together haven't made as much in their entire lives as these CEO's make in one year. (Continued…)
Business Opportunities
posted 11/27/08 @ 3:55 AM EST
This may be a good idea to set an example. President John F Kennedy reduced his income to one dollar, $1, a year income as president.
Although in reality, the income of the president is not much. (Continued…)
mcphil47
Phil
posted 12/01/08 @ 3:50 PM EST
If a president forgoes his salary it really does send a powerful message to the nation that he cares. I think it would be wise for Obama to do this, but it is a decision that he gets to make. (Continued…)
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