A major problem with the US political process is not just the cost of running for the executive office, but the grossly deficient compensation of our nation's first executive. I woke up this morning with this problem on my mind and got to thinking about a special class of treasury bond that could be created. To give it a name, the "Executive" bond could close the Executive's compensation gap and ensure that we have a full field of the most-qualified candidates competing for the job. The Executive bond would also ensure that the Executive's financial interest is tied to the stability of the US dollar and the prudent stewardship of the nation's financial resources.
Executive Bond Idea Outline
- 12-year maturity on each tranche (three terms to reinforce strong policy continuity across sitting executives)
- Only redeemable by the Treasury at maturity (non-marketable like Social Security's Bonds)
- Fixed-Rate Coupon
- Last in line seniority (last bill paid, so other bills are paid first)
- Federally Tax Exempt - It does not make sense for the nation to pay the President and then take a portion back in taxes.
- Tranches Granted Annually (~$25mm/annually) @ 3% interest coupon this would add $750k annual compensation to the current salary (per year, per tranche)
- Align executive financial interest with the long-term interests of the nation
- Stable Dollar Fiscal and Monetary Policy
- Prudent fiscal management
- Diminish financial incentive to executive bribery
Comments are welcome as this a very early-stage idea. The idea is to encourage a complete field of candidates and a comprehensive menu of skills.