Sunday December 13, 2009 19:07
New exec salary cap unveiled by White House pay czar
Posted by Alex as Corporate, Government
And this is why companies just want to pay back the bailout money the government has given them. Salary caps. Bad for them. Good for us. Taxpayers would hate to read some top corporate exec getting while Average Joe can’t even make credit card payments.
The government’s pay czar Kenneth Feinberg issued the new pay restrictions for the top employees of bailout recepients. The ruling will affect 75 of the 100 top employees of Citigroup, AIG, General Motors and GMAC.
The ruling will prevent execs from receiving more than $500,000 base salary. At least half would come in form of company stock and the rest in cash.
“We want to minimize these runaway perks and other compensation practices,” Feinberg said.
A close monitoring of salaries and bonuses was instituted after AIG made a scandal releasing millions of dollars in bonuses to its financial division despite receiving bailout money.
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