Obama's got some cajones.

[eunhye]

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

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

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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.
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Joshua Roberts/Bloomberg

Kenneth R. Feinberg, the Treasury Department's special appointee for executive compensation, spoke yesterday in Washington.

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.

The pay restrictions illustrate the humbling downfall of the once-proud giants, now wards of the state whose leaders’ compensation is being set by a Washington paymaster. They also show how Washington in the last year has become increasingly powerful in setting corporate policies as more companies turned to the government for money to survive.

The compensation schedules set by Kenneth R. Feinberg, the special master at Treasury handling compensation issues, comes as many other banks that received smaller but significant taxpayer assistance in the last year have been reporting huge year-end bonuses, setting off a new round of recrimination in Washington about the bailout of Wall Street.

Since his appointment last June by Treasury Secretary Timothy F. Geithner, Mr. Feinberg has spent months in negotiations with the companies as he seeks to balance compensation concerns against fears at the companies that any huge restrictions in pay could prompt an exodus of executives. Under a law adopted earlier this year, the Treasury Department was instructed to examine the salaries and bonuses for the five most-senior executives and their 20 most highly paid employees at companies that have received extraordinary assistance.

Mr. Feinberg has already achieved significant results at several companies. As a result of his discussions, Kenneth D. Lewis, the head of Bank of America who recently resigned, agreed to forgo his salary and bonus for 2009. (He will still receive a pension of $53.2 million, although Mr. Feinberg can issue an advisory opinion challenging it that would carry political weight.) And fearful of a political backlash over the pay of Andrew J. Hall, a successful energy trader who received nearly $100 million last year, Citigroup agreed two weeks ago to sell its Phibro unit that Mr. Hall heads to Occidental Petroleum.

[Ksandra]

this is exactly what needs to be done, and sadly it'll probably never happen.

[Bingbong]

Yup, cut their pay... and pretend that those CEO's won't leave those companies in order to go to companies that will compensate them what they feel they are worth.

[Nystul]

I hear the banking industry has loads of job opening and very few applicants. M I RITE????

[Cephius]

"Ah, yes sir. I see here on your resume that you headed one of the large investment banks that exploited flawed practices for years until it finally caught up with you and cost the livelihood of thousands of workers and helped plunge our economy into the largest economic downturn since the 1930s. When can you start?"

[Bingbong]

List of chief executive officers - Wikipedia, the free encyclopedia

Rocawear - Jay-Z

Bitches better have my money fo sho.

[Meresgi]

Because everyone's looking to hire CEOs from companies that would have gone under if not for government bailouts.

Sadly they are, and those CEOS will find better paying jobs easily.

[Rhinox]

Sadly they are, and those CEOS will find better paying jobs easily.

you're basing this on......?

Love how the retarded op thinks this is a bad thing yet they complain about the tarp bill. You can't have it both ways asshole you either pissed about to big to fail policy and hate the fact that CEOs are using tarp money for bonuses or you agree with it and don't care what the banks use it on

[Mojo]

The OP thinks it's a bad thing?

[Sirrus_Asura]

you're basing this on......?

Love how the retarded op thinks this is a bad thing yet they complain about the tarp bill. You can't have it both ways asshole you either pissed about to big to fail policy and hate the fact that CEOs are using tarp money for bonuses or you agree with it and don't care what the banks use it on

Pretty much this. Shouldn't have gotten the money to begin with, etc.

[Xno Kappa]

The OP is just another one of Obama's spiteful ex-girlfriend's who make a mockery of the conservative label. He likes to pick out random news articles that clearly show he has no idea what the fuck he's talking about in a pathetic "see! SEE!" butt-hurt fashion.

[Ksandra]

Does the OP even think it's a bad thing? He didn't even post any comments, just the article....

[Xno Kappa]

Clearly you haven't read or seen any of his other retarded posts/threads.

[Ksandra]

i don't pay enough attention, I associate people by their avatars and he has none!

[Tyche]

While I don't have strong feelings either way on if this is good or bad, as I can see both PoV's, I think it's absurd to think that there aren't companies that wouldn't line up to hire some of these individuals, especially in foreign markets, and certainly for the lot that make no more than $200,000. Sorry, $200,000 is chump change in some of the larger metro areas...

While I can't speak for every CEO, I think a select few have given the lot a very bad rep, and caused a public outcry that CEO's in general are overpaid. I really don't feel thats the case at all.

[eunhye]

I have no idea who hiro k something, whoever that dude is. It's not Obama, the person, it's Obama and his policies. See the difference?

I was against TARP, against the stimulus bill that's currently being implemented, against cry-me-a-river tactics that both republican/democrats use to further their agenda, and against a lot of policies that are implemented to increase the deficit that I have to pay more into the system, just because.

On this particular one with telling wall street how much to pay their people, I honestly could care less as I don't own a home, have zero debt. I pay everything with mostly cash. My credit score is at its max. I could buy a house with 50% down. Etc.

So you tell me, it's a very simple question: What reason is there for the current government in office to wag their fingers and tell regular folk to pay more out of their own pocket just because Jane Doe and a few million like her need help?

[Rhinox]

Just curious tyche what would you consider an overpaid CEO?

[Rhinox]

I have no idea who hiro k something, whoever that dude is. It's not Obama, the person, it's Obama and his policies. See the difference?

I was against TARP, against the stimulus bill that's currently being implemented, against cry-me-a-river tactics that both republican/democrats use to further their agenda, and against a lot of policies that are implemented to increase the deficit that I have to pay more into the system, just because.

On this particular one with telling wall street how much to pay their people, I honestly could care less as I don't own a home, have zero debt. I pay everything with mostly cash. My credit score is at its max. I could buy a house with 50% down. Etc.

So you tell me, it's a very simple question: What reason is there for the current government in office to wag their fingers and tell regular folk to pay more out of their own pocket just because Jane Doe and a few million like her need help?

So were against the TARP but don't care that the CEO's are using the money for bonuses? Does not compute.

[Tyche]

Just curious tyche what would you consider an overpaid CEO?

Not all CEOs are created equal...

[Xno Kappa]

I have no idea who hiro k something, whoever that dude is. It's not Obama, the person, it's Obama and his policies. See the difference?

I was against TARP, against the stimulus bill that's currently being implemented, against cry-me-a-river tactics that both republican/democrats use to further their agenda, and against a lot of policies that are implemented to increase the deficit that I have to pay more into the system, just because.

On this particular one with telling wall street how much to pay their people, I honestly could care less as I don't own a home, have zero debt. I pay everything with mostly cash. My credit score is at its max. I could buy a house with 50% down. Etc.

So you tell me, it's a very simple question: What reason is there for the current government in office to wag their fingers and tell regular folk to pay more out of their own pocket just because Jane Doe and a few million like her need help?

Careful, your "not knowing what the fuck your talking about" is showing again.