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SUNDAY, NOVEMBER 22, 2009
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50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

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(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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12 comments
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Cprizzle
Oct 22, 09 9:55 AM CDT
Sounds like a good idea to me. It's not like these guys are hurting for money. Reply
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+2
Gooner82
Oct 22, 09 9:56 AM CDT
I'm sure some will cry "government overreaching," but they are likely to be the same people who staunchly opposed the bailout in the first place (Obama's, not Bush's). Reply
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+2
IN RESPONSE:
godawgs
Oct 22, 09 10:28 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.
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+4
NovThird2010
Oct 22, 09 10:04 AM CDT
Congress should take a pay cut, too. "Do as I say, not as I do." Reply
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+4
IN RESPONSE:
alkaseltzersammich
Oct 22, 09 10:21 AM CDT
I'm sure your Republican brethren would love that.
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Chrysler • executive compensation • Bank of America • General Motors • Citibank • AIG • Treasury Department • Obama administration • Wall Street bailout • TARP • Elizabeth Warren • Kenneth Feinberg

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