50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

By the Associated Press

Posted Oct 22, 2009 9:40 AM CDT

(AP) – The Treasury Department today is expected to order seven companies that have not paid back last year's US government bailouts to halve their top executives' average compensation. The cuts apply to the 25 highest-paid executives at banks and other companies that received the most assistance, with salaries being slashed by as much as 90%. The move, reported last night, is "real," TARP overseer Elizabeth Warren confirmed to CBS this morning.

The seven companies are Bank of America, AIG, Citigroup, General Motors, GMAC, Chrysler, and Chrysler Financial. Pay cuts aside, companies have been reworking their pay plans to ensure compensation reflects executive performance, partly by giving executives more of their compensation in stock and stock options. The pay restrictions will also require any executive seeking more than $25,000 in perks to get permission from the government.

Kenneth R. Feinberg. (AP Photo)

Congressional Oversight Panel Chairwoman Elizabeth Warren. (AP Photo)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

OTHER STORIES ON OUR RADAR

AP Photo

35 Brutally Honest Reasons Men Say No to Sex (The Stir)

Man in Mugshot Explains Why He Has Half a Head (HuffPost)

Another Sign Rihanna and Chris Brown Might Get Back Together? (Celebuzz)

These Exes Were Spotted Making Out … and That's a Bad Thing (Bleacher Report)

Did the Romney Family Dog Flee to Canada? (Slate)

Partner Links

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

COMMENTS

Read the comment policy

Showing 3 of 10 comments

hybrid

Oct 23, 2009 4:20 AM CDT

They are far overpaid. They produce nothing take everything and repace it with nothing. Wow i wish i could get away with that.

Snowleopard

Oct 22, 2009 4:38 AM CDT

you're comparing salaries of around $100-200K per year to salaries of $100M+ per year. For the difficulty of their jobs and the breath of skills it requires, I don't think senators and representatives are overpaid.

godawgs

Oct 22, 2009 3:28 AM CDT

no one should cry that if the companies are still using the TARP money. Most people that really opposed one bailout were against all of the bailout's bush's included.

What's Popular Now on Facebook

Rick Santorum: Birth Control Is 'Not OK'

E-Cigarette Explodes in Man's Mouth

Associated Press (Source Grid »)

Money • Politics • US

Chrysler • executive compensation • Bank of America • General Motors • Citibank • AIG • Treasury Department • Obama administration • Wall Street bailout • TARP • Elizabeth Warren • Kenneth Feinberg

More Newser Stories

Taxpayers Still Have $132.9B Stuck in TARP

Government trying to unwind stock without losing on the deal

(NEWSER) - The Treasury Department has had a tough time selling off some of the stock it took on in exchange for TARP bailout funds, meaning taxpayers are still on the hook for some $132.9 billion—some of which they may never get back, according to a report released today by the government watchdog overseeing the program. Selling the stock has been complicated by swingy stock market prices, and deep dips in some of the bailed out companies, the AP reports. More»

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Government strikes deal to sell remaining 2.4B shares

(NEWSER) - Taxpayers will wind up making out like bandits on their $45 billion bailout of Citigroup. The Treasury Department has struck a deal to sell its remaining 2.4 billion shares of Citigroup for $4.35 a share, it announced yesterday, bringing the total money made off such sales to $57 billion. Citigroup will pay the underwriting fees on the sale. More»

US Bailout Funds Aided Foreign Firms

Watchdog says TARP spending aided France, Germany

(NEWSER) - A big slice of the $700 billion in bailout funds the US poured into the financial system ended up helping foreign companies, according to a report from a congressional watchdog agency. Because the Treasury Department failed to gather enough information on the flow of money, it ended up taking on risk that should have been shouldered by France and Germany, according to the Congressional Oversight Panel. More»

17 TARP Banks Paid Execs Billions: Pay Czar

Payments would have violated later guidelines

(AP) - Seventeen banks gave their top executives $1.6 billion in lavish payments while they were receiving billions of dollars in taxpayer-funded bailouts, the Treasury Department's compensation chief said today. Kenneth Feinberg said he did not have the authority to ask the firms to repay the money handed out during the financial crisis. But he said they should develop new rules that would allow them to slash compensation payments in future crises. More»

Bailout Tab Plummets; Companies Quick to Repay

Expected costs down from $250B to $89B in past year

(NEWSER) - The financial bailout is looking a lot less expensive these days: At a projected $250 billion just a year ago, the expected federal bailout tab is now down to $89 billion—less than the government paid for the savings-and-loan crisis 20 years ago. The falling bailout costs come thanks to fast stabilization of markets, which has let companies pay back the government sooner than expected. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

OTHER STORIES ON OUR RADAR

Chrysler • executive compensation • Bank of America • General Motors • Citibank • AIG • Treasury Department • Obama administration • Wall Street bailout • TARP • Elizabeth Warren • Kenneth Feinberg

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Taxpayers Still Have $132.9B Stuck in TARP

Government trying to unwind stock without losing on the deal

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Government strikes deal to sell remaining 2.4B shares

US Bailout Funds Aided Foreign Firms

Watchdog says TARP spending aided France, Germany

17 TARP Banks Paid Execs Billions: Pay Czar

Payments would have violated later guidelines

Bailout Tab Plummets; Companies Quick to Repay

Expected costs down from $250B to $89B in past year

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

Bookmark & Share

OTHER STORIES ON OUR RADAR

Chrysler • executive compensation • Bank of America • General Motors • Citibank • AIG • Treasury Department • Obama administration • Wall Street bailout • TARP • Elizabeth Warren • Kenneth Feinberg

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Taxpayers Still Have $132.9B Stuck in TARP

Government trying to unwind stock without losing on the deal

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Government strikes deal to sell remaining 2.4B shares

US Bailout Funds Aided Foreign Firms

Watchdog says TARP spending aided France, Germany

17 TARP Banks Paid Execs Billions: Pay Czar

Payments would have violated later guidelines

Bailout Tab Plummets; Companies Quick to Repay

Expected costs down from $250B to $89B in past year

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?