Share this [5]
According to the Wall Street Journal, federal "pay czar" Kenneth Feinberg [6] will order seven bailed out financial institutions and auto companies to cut their compensation packages for top officers by 25%-50%. According to one professor interviewed, this represents a "seismic shift" in corporate governance. The seven companies are Citigroup [7], Bank of America [8], General Motors [9], Chrysler, GMAC, Chrysler Financial and AIG [10]. These firms have received a total of about $250 billion in bailout funds from the federal Troubled Assets Relief Program [11] (TARP). Missing are the other bailed out firms, such as Goldman Sachs [12], which benefited from the taxpayer lifeline, but has paid back TARP funds. Earlier this month, Feinberg formally approved the salary and compensation package of AIG's Robert Benmoche at $10.5 million. How will Benmoche and friends survive? Perhaps they can get some advice from the thousands of workers at these firms who lost their jobs this year.
Links:
[1] http://dev.prwatch.org/users/35270/mary-bottari
[2] http://dev.prwatch.org/topics/corporations
[3] http://dev.prwatch.org/topics/economy
[4] http://dev.prwatch.org/topics/politics
[5] http://www.addtoany.com/share_save?linkurl=http%3A%2F%2Fdev.prwatch.org%2Fspin%2F2009%2F10%2F8643%2Fhalloween-horror-seven-ceos-face-paycuts&linkname=Halloween%20Horror%21%20Seven%20CEOs%20to%20Face%20Paycuts
[6] http://www.sourcewatch.org/index.php/Kenneth_R._Feinberg
[7] http://www.sourcewatch.org/index.php/Citigroup
[8] http://www.sourcewatch.org/index.php/Bank_of_America_Corp.
[9] http://www.sourcewatch.org/index.php/General_Motors_Corporation
[10] http://www.sourcewatch.org/index.php/American_International_Group
[11] http://www.sourcewatch.org/index.php/Troubled_Asset_Relief_Program
[12] http://www.sourcewatch.org/index.php/Goldman_Sachs
[13] http://online.wsj.com/article/SB10001424052748704224004574487890658069498.html?mod=googlenews_wsj