Obama to slash (some) senior bank execs’ compensation by 90 percent

[G_j]

http://rawstory.com/2009/10/obama-slash-bank-execs-salaries/

Obama to slash senior bank execs’ compensation by 90 percent

By Daniel Tencer
Wednesday, October 21st, 2009 -- 3:58 pm


Goldman Sachs: Income inequality will 'achieve greater prosperity and opportunity for all'

In a sign the Obama administration may finally be reacting to Main Street anger over Wall Street bonuses, the Treasury Department's "pay czar" is planning new limits on compensation for the senior-most executives at seven companies that received large amounts of bailout cash.

The 25 highest-earning executives at the seven firms -- Citigroup, Bank of America, A.I.G., as well as GM and Chrysler and their respective financing arms -- will see their compensation for this year slashed by an average of 90 percent, the New York Times reported in an exclusive on Wednesday.

Overall, compensation for all executives at the seven companies will drop 50 percent compared to last year. At A.I.G., whose bailout alone cost taxpayers $180 billion, executives in the company's financial products division will see their compensation limited to $200,000.

Notably, some of the most high-profile recipients of government aid, such as investment bank Goldman Sachs, are not on the list.

The Times said Kenneth Feinberg, the administration's "pay czar," whom the newspaper refers to as "the special master at Treasury handling compensation issues," will announce the new restrictions in the next few days.
..more..

[aquart]

1. I will be pleased.

[Dr Fate]

2. This move will be very popular- good stuff. n/t

n/t

[Angry Dragon]

3. We will see

We will see how far it goes and if it makes much difference. Expect to hear a lot of yelling.

[MichiganVote]

4. Yeah sure...believe it when I see it.

[SoCalDem]

5. Just tie it , percentage-wise, to the lowest paid in the company

that would boost lower wages too :evilgrin:

what if the top earner in a company could not make more than 200% of the lowest:)

[nadinbrzezinski]

9. How ahem NORWAY of you...

:hi:

[Subdivisions]

6. 'Notably, some of the most high-profile recipients of government aid,

such as investment bank Goldman Sachs, are not on the list.'

Of course not. :eyes:

[SpartanDem]

10. Goldman paid back it's money

[girl gone mad]

14. lol.

:rofl:

[madokie]

7. I love it

[nadinbrzezinski]

8. But, but, wiill they do now?

I mean no new yacht this year... so gosh to use last years...

What will the neighbors think?

[burning rain]

11. Good policy, & smart politics.

America's in a dark, angry mood over Wall Street excesses. It's seemed that the administration and congressional Democrats have figured that they could secure the support of Wall Street by allowing them to gorge at the trough without meaningful regulation, while keeeping the support of the left and lower-income folks, who have nowhere else to go anyway. It's good if they're getting away from that thinking, because there's always somewhere to go--not vote, or go for some Nader type. And it serves to cut the legs out from under possible Republican efforts to peddle a libertarian solution: cut taxes and spending to the bone. That would be rather amazing after the Bushies' eight-year run of spending, but the teabaggers could easily push the GOP decisively in that direction.

[pansypoo53219]

12. and they STILL get over a mil.

something is wrong.

[rucky]

13. Including bonuses & options?

[G_j]

17. --

[Ardent15]

15. Good.

Hopefully this is a sign of real change.

[zytime]

16. Instead of forcing a pay cap

that will just be worked around with perks, why don't they set an acceptable limit ($10???) and say that any compensation that exceeds that amount, including base salary, bonuses, perks, and tax payments, is immediately due for repayment to the government. If the cap is $500K and the compensation package is $25Mil, then $24.5 Mil (or even some multiple thereof) is immediately due. They can still pay their execs whatever they want or say they are contractually obligated to, but at least the taxpayers would be getting some of their due at the same time.

[lumberjack_jeff]

18. I'd prefer 90% tax on incomes over $5 million. n/t

[G_j]

19. Treasury to order bailed-out firms to slash pay

http://news.yahoo.com/s/ap/20091022/ap_on_bi_ge/us_obama_executive_pay

Treasury to order bailed-out firms to slash pay


AP – FILE - In this Sept. 16, 2008 file photo, The American International Group logo is shown in New York. …
By MARTIN CRUTSINGER, AP Economics Writer – 53 mins ago
WASHINGTON – The Treasury Department on Thursday is expected to order seven companies that have not paid back last year's 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 percent, according to a person familiar with the matter.
Kenneth Feinberg, the special master at Treasury appointed to handle compensation issues as part of the government's $700 billion financial bailout package, is making the pay decisions. He is scheduled to release the details Thursday afternoon.

The seven companies are Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

Elizabeth Warren, who heads the Troubled Asset Relief Program's oversight committee, said Thursday on CBS's "The Early Show" that reports of pending slashes in executive salaries are "real."
Smaller companies and those that have repaid the bailout money, including Goldman Sachs Group Inc. and JPMorgan Chase & Co., are not affected.

Tom Wilkinson, a GM spokesman, said Wednesday that the auto company was "currently in discussions with Mr. Feinberg's office regarding executive compensation. We will have further information once those discussions have concluded."
GMAC has "been working on a proposal that aims at embodying the principles set forth for compensation along with balancing the need to retain critical talent necessary to execute our turnaround. Until we receive notification about that plan, we have no further comment," said Gina Proia, a spokeswoman.