FOX - "Your World" - Transcript

Interview

FOX - "Your World" - Transcript - Interview With Rep. Maine Waters - New Pay Czar

Interviewer: Neil Cavuot

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MR. CAVUTO: Another czar, number 16, as I've been saying. The White House appointing Ken Feinberg as the nation's pay czar, master of compensation, whatever you want to call him. I wonder, though, whether he heard about the Treasury secretary on this whole pay cap issue, what he had to say?

SEC. GEITHNER: (From videotape.) We are not proposing ongoing government role in setting policy on compensation. We do not believe it's appropriate for the government to set caps on compensation.

MR. CAVUTO: All right. So, if he's not for pay caps, if we're not setting pay caps, why do we have a pay czar? Let's ask Democratic Congresswoman Maxine Waters. She favors having a pay czar.

Congresswoman, if I heard the Treasury secretary right, that's not what this dude is going to do, so why do we need him?

REP. WATERS: Well, I think we do need someone watching the store, you know. We have not had the kind of watchful eye from our regulatory agencies that could see trouble coming, could talk about the unreasonable compensation and the bonuses and the golden parachutes. And so if he does nothing more than place transparency into these companies so that the public and the stockholders and the investors can know what's going on, that's enough for me.

MR. CAVUTO: All right. So if he's just -- if there's no cap, if he's not going for caps, then --

REP. WATERS: He's not going to cap any salaries. Not going to do that.

MR. CAVUTO: All right. So what is he capping? What is he doing? Why do we have a pay czar?

REP. WATERS: Well, we are going to look at bonuses. We are going to look at those bonuses, particularly for those companies who get TARP monies.

MR. CAVUTO: All right. So is he going to cap bonuses? Is that what he's going to do?

REP. WATERS: Well, we've got to talk about what's fair, what makes good sense and whether or not there should be golden parachutes or whether or not there should be the kind of compensation that's short term rather than long-term stock options, that kind of thing. There's a lot to look at, a lot to talk about. After all, this is the taxpayer's money that is being watched. These companies have taken the TARP bailout money, the taxpayer's money and so they should be watched.

MR. CAVUTO: Congresswoman, I see your point, and it's a very good one. I'm just wondering, though, with all of these banks and brokerage houses rushing to return that money, I guess so they can go back to paying their executives whatever they want, what happens in the interim to those who don't? Now, if their salary isn't being capped, but you seem to be implying their bonuses could be, then I don't understand the role of this pay czar. Is he then saying, I'm going to put a limit on how much a CEO can get in bonuses or in stock grants, I'm going to put a limit on what his executive vice presidents can get with the same? What is it? Because the Treasury secretary seems to think no big deal, don't worry about. What is it?

REP. WATERS: Well, what we're looking at, the top five executives in the companies that have received a lot of TARP money, those executives will be watched. We will be looking at their bonuses, and we will be coming up with a formula similar to something like --

MR. CAVUTO: Well, do you have a number in mind, Congresswoman? Do you have a number in mind? The reason why I ask is because at first it was a half a million dollars, right? Half a million dollars, they said anyone who earns more than that, too much. What do you say?

REP. WATERS: No, no, no, no. That's not any numbers like that have been put on it. And I'm not the czar, but what is being talked about bonuses that do not exceed one-third of compensation, no golden parachutes, no big cash-outs over short period of time, transparency.

MR. CAVUTO: Well, what is compensation, Congresswoman? I mean, compensation includes bonuses. Now, a lot of these guy's bonuses are bigger than their salaries. So all I'm asking, because I can't get a handle on it, what is it?

REP. WATERS: Well, obviously, we're talking about the difference between pay compensation and bonuses. We're going to define what those differences are. You may not have all the information now --

MR. CAVUTO: But compensation is -- ma'am, compensation is pay. It is bonuses.

REP. WATERS: It could be. It could be, and it could not. We're separating that out. We're separating out --

MR. CAVUTO: You don't know, do you? You don't know. I love you dearly, but you don't know, and the czar doesn't know, and the Treasury secretary doesn't know.

REP. WATERS: He's going to define what is a bonus. And I think we should let the czar do that. What do you have against a watchdog over the taxpayer's money? Don't you think, for example, the people should be looked out for after they have given and loaned that money to these companies?

MR. CAVUTO: No doubt. But Congresswoman, I guess what I'm trying to find out, the people don't even know what the watchdog is going to be watching because he hasn't given any numbers.

REP. WATERS: They will know. We hope you will help to get that information out.

MR. CAVUTO: I try. I'm asking you. I talk to the White House. I talk to Treasury. No one gives me a number. I just want a number. If I'm going to pay a pay czar, I want to know what pay he's going to look at.

REP. WATERS: We're still working on legislation. As a matter of fact, we have a hearing tomorrow in the Financial Services Committee. We will be determining these things. You will be the first to know. And we want you to get that information out.

MR. CAVUTO: Really? Will I be the very first? Okay.

REP. WATERS: Maybe not the very first, but you'll be right up there.

MR. CAVUTO: You better not call CNN first, because I'm going to be listening. Congresswoman, seriously --

REP. WATERS: But we want you to know. We want you to help disseminate information. The taxpayers have a right to know, and that's what you're all about, helping to disseminate information. Let's look out for the taxpayers.

MR. CAVUTO: All right. I just want to know what the heck that information is.

REP. WATERS: It's coming. It's coming, yes.

MR. CAVUTO: So is Christmas. But you're a great guest, always good having you on. Thank you.

REP. WATERS: Thank you so very much.

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