U.S. to Order Steep Pay Cuts at Firms That Got Most Aid

[dtotire]

U.S. to Order Steep Pay Cuts at Firms That Got Most Aid

By STEPHEN LABATON
Published: October 21, 2009 \

WASHINGTON — Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in federal bailouts, the Obama administration will order the companies that received the most aid to deeply slash the compensation to their highest paid executives, an official involved in the decision said on Wednesday.


Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the cash payouts to their 25 best-paid executives by an average of about 90 percent from last year. For many of the executives, the cash they would have received will be replaced by stock that they will be restricted from selling immediately.

And for all executives the total compensation, which includes bonuses, will drop, on average, by about 50 percent.

The companies are Citigroup, Bank of America, the American International Group, General Motors, Chrysler and the financing arms of the two automakers.At the financial products division of A.I.G., the locus of problems that plagued the large insurer and forced its rescue with more than $180 billion in taxpayer assistance, no top executive will receive more than $200,000 in total compensation, a stunning decline from previous years in which the unit produced many wealthy executives and traders.

In contrast to previous years, an official said, executives in the financial products division will receive no other compensation, like stocks or stock options.


And at all of the companies, any executive seeking more than $25,000 in special perks — like country club memberships, private planes, limousines

or company issued cars — will have to apply to the government for permission. The administration will also warn A.I.G. that it must fulfill a commitment it made to significantly reduce the $198 million in bonuses promised to employees in the financial products division.




more at:


http://www.nytimes.com/2009/10/22/business/22pay.html?hp

[Tyrone Slothrop]

1. Your link is wrong

Should be:
http://www.nytimes.com/2009/10/22/business/22pay.html?em

[dtotire]

2. corrected it n/t

[clear eye]

3. For real? Not just rumor? n/t

[katty]

4. finally-something! cnbc w/fill up with casino crybabies today

[dixiegrrrrl]

5. Note, however, that in the article, 2 of the Big Boys are not losing any money.

The head of BOA who just resigned will walk away with 53 million, and one of Citi's fat cats will keep his
money ,even tho his division has been sold.