Friday, October 23, 2009

Obama's Pay Czar to Cut Executive Salaries For Largest TARP Recipients by 90 Percent

Kenneth Feinberg, Obama's Pay Czar, will be ordering salary cuts to the top 25 executives from companies that received TARP funds by 90%. The details have not yet been made public, but there are a few companies who will not be effective. There are already allegations of political favoritism regarding which companies are not included, and for obvious reasons given the exempt companies.

If they get away with this, and all indications suggest they will, it should make you nervous.

http://powip.com/2009/10/first-they-came-for-executive-compensation

"The Obama administration has announced that the U.S. Pay czar, Kenneth Feinberg, will be ordering compensation cuts for the largest recipients of TARP funds.  Details of the plan will be released in the next few days by Treasury, but some of the details have entered the zeitgeist.  There will be seven firms effected by this measure: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.  And on average the compensation packages will be cut by 50%, although in some cases the cuts will be much deeper.  Funny, but I don’t see Goldman Sachs on that list.


 


According to sources, the salaries of the top 25 highest paid executives of the firms named will be cut an average of 90%"

http://jammiewearingfool.blogspot.com/2009/10/why-is-ge-exempt-from-government.html

"So we now have the government targeting executives at these bailed-out banks, but GE, home of the network that shamelessly propagandizes for Obama and the Democrats, and even receives talking points from them while on the air, is exempt."

1 comment:

  1. This kind of made me wonder if this proposal is really that legal.. have it been precedented before?
    The CEO Game's buisness blog also shades lights on this, good for further reading..

    ReplyDelete

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