David Kirkpatrick

October 23, 2009

TARP recipients to get White House mandated pay cut

I’m no fan of the government telling a business how much it’s going to pay executives, but you have to say the major TARP recipients brought this on themselves. After the forced bailout (most of these players had no choice but to go along with the bailout) the situation became no longer business as usual. Somehow that point was lost on the C-level at Citigroup, BoA, GM, Chrysler, GMAC, Chrysler Financial, and especially AIG. The end result? The pay packages of 175 top executives are going to start seeing much lighter pay checks.

Cue an entire chorus of nanoscale violins.

From the link:

The Obama administration will soon order the nation’s biggest bailed-out companies to drastically cut the pay packages of 175 top executives, a senior administration official confirmed to CNN Wednesday.

Kenneth Feinberg, who was named the White House’s pay czar in June, will demand that each of the seven largest bailout recipients lower the total compensation for their top 25 highest paid employees by 50%, on average, the official told CNN.

And here’s the big number:

Under the plan, which is expected to be officially released by the Treasury Department next week, annual salaries for executives at those seven firms are expected to fall 90%, on average, the official said.

1 Comment »

  1. I’m no fan of banks, but this is ridiculous. This was never part of the bailout requirements.
    This White House is out of control and your paycheck could be next.
    These cuts are being done because few people have a love of banks right now.
    “When they came for the Bankers I said nothing because I was charged an overdraft fee.”

    America is being ruined by two groups of people.
    One is those who believe that “if you can have it, I have to be given it too, regardless of whether I can afford it.”
    The other group is those who say “I don’t like or agree with that, so you can’t have it.”

    Look at the banks that handed out loans like candy to anyone who walked in and applied. Greed? Or fear of lawsuits because someone who couldn’t afford a mortgage was denied one and could, in this litigious society, claim it was because of their ethicity?
    Look at all the towns and schools who are cancelling Halloween events because a small but vocal opposition said “we don’t believe in Saints, so you cannot celebrate All Hallows Eve because it’s offensive to us.”
    The Constitution does not provide the “Right to Not Be Offended.”

    Comment by Bob — October 23, 2009 @ 10:12 am

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