The Obama Administration has appointed Kenneth R. Feinberg to review and reduce the salary of the executives for the following 7 companies: Citigroup, Bank of America, General Motors, Chrysler, GMAC, Chrysler Financial, and American International Group. These 7 companies have received a total of approximately $250 in bail out funds from the Troubled Assets Relief Program (TARP).
Feinberg’s official title is Special Master on Compensation, bestowed upon him be the Obama administration. Feinberg has sole discretion to set compensation for the five top senior executives plus the next 20 highest-paid people at each of the seven companies.
Feinberg’s plan will reduce cash salaries of the executives at these companies by an average of 90%. Other reductions will include eliminating the use of corporate jets for personal travel, chauffeured drivers, and payment of country club memberships.
The official announcement of these cuts is supposed to be announced by The Treasury Department on Thursday, October 29, 2009.
Resources:
Murakami, Tomoeh and Dennis, Brady. U.S. to cut pay for bailed-out bosses. The Washington Post. 22 Oct. 2009. Viewed 27 Oct. 2009. http://www.washingtonpost.com/wpdyn/content/article/2009/10/21/AR2009102102719.html
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