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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.
Kenneth R. Feinberg.   (AP Photo)
Congressional Oversight Panel Chairwoman Elizabeth Warren.
Congressional Oversight Panel Chairwoman Elizabeth Warren.   (AP Photo)
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COMMENTS
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.

Copyright 2012 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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