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Fri Apr 6, 2012, 03:13 PM

Feds cut pay of execs at bailed out firms

Source: CBS

CBS/AP) WASHINGTON - The federal government has ordered executives at three companies bailed out by U.S. taxpayers during the 2008 financial crisis to take a pay cut.

The Treasury Department says nearly 70 executives at American International Group Inc. (AIG), Ally Financial Inc., and General Motors Co. (GM) had their annual compensation reduced by 10 percent. The CEOs of each company had their pay frozen at 2011 levels.

All three companies have yet to repay what they received from the $700 billion bailout and therefore are subject to pay cuts.

Morgan Stanley CEO Gorman paid $13 million in 2011
JPMorgan Chase CEO Dimon paid $23 million in 2011

Since it was rescued under the Troubled Asset Relief Program after the housing crash, AIG has reduced what it owes the U.S. government by more than 75 percent, according to the Treasury. The insurance company still owes taxpayers around $50 billion.

The government has recovered nearly half of the funds invested in GM, which owes about $25 billion, and nearly one-third of the money injected into Ally Financial, which owes about $12 billion.

Read more: http://www.cbsnews.com/8301-505125_162-57410584/feds-cut-pay-of-execs-at-bailed-out-firms/?





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Reply Feds cut pay of execs at bailed out firms (Original post)
MindMover Apr 2012 OP
freshwest Apr 2012 #1
RC Apr 2012 #2
Uncle Joe Apr 2012 #3
aquart Apr 2012 #4
zeemike Apr 2012 #5
SemperEadem Apr 2012 #6
Tx4obama Apr 2012 #7
Quantess Apr 2012 #8
wordpix Apr 2012 #9
Cal Carpenter Apr 2012 #10

Response to MindMover (Original post)

Fri Apr 6, 2012, 03:19 PM

1. GOP squeals: Socialism! Unpatriotic! Treason*!

*Anything that goes against our Republican overlords.

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Response to MindMover (Original post)

Fri Apr 6, 2012, 03:19 PM

2. Those same Execs need to be investigated for possible criminal wrong doing

 

for those companies needing to be bailed out in the first place.

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Response to MindMover (Original post)

Fri Apr 6, 2012, 03:27 PM

3. Kicked and recommended.

Thanks for the thread MindMover and the ABBA song was a nice touch too.

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Response to MindMover (Original post)

Fri Apr 6, 2012, 03:42 PM

4. Not enough, but something.

A recognition of the principles of common sense, merely.

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Response to MindMover (Original post)

Fri Apr 6, 2012, 04:17 PM

5. How do you expect them to retain their talent?

I am sure there are many companies out there waiting to snap them up at 13 mil a year.
But they will will probably stay and get even more in a performance bonus.

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Response to zeemike (Reply #5)

Fri Apr 6, 2012, 05:26 PM

6. It takes talent to make money

and keep a company in the black.

any dolt can lose and waste money and mismanage it into the red---which is what these idiots have done.

There is no talent at these companies.

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Response to MindMover (Original post)

Sat Apr 7, 2012, 04:02 AM

7. K&R n/t

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Response to MindMover (Original post)

Sat Apr 7, 2012, 10:12 AM

8. Good news.

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Response to MindMover (Original post)

Sat Apr 7, 2012, 10:26 AM

9. Big whoop, does this include the CEO's stock options?

While I applaud the cuts, they don't make much of a dent, esp. b/c most of the CEO's compensation is in stock and if they're not getting "stock incentives" cut, it's almost nothing. Even with teh stock options, a cut of a $million on a $10 million total is nothing when your company owes billion$.

http://www.freep.com/article/20120407/BUSINESS0101/204070376/U-S-freezes-Akerson-s-pay-limits-what-GM-execs-make?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

snip: Akerson's 2012 pay package will remain $9 million. In 2011, that comprised a $1.7-million salary and $7.3 million in stock-based incentives. Michael Carpenter, CEO of Ally Financial, formerly GM financing unit GMAC, is set to earn $9.5 million in total compensation. AIG CEO Robert Benmosche will make $10.5 million.

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Response to MindMover (Original post)

Sat Apr 7, 2012, 10:36 AM

10. Oh no, now I only make $9 million instead of $10 million

or

Shoot, I only made $13 million last year. I can't believe I'm not getting a raise! How in the world will I feed my children or afford the doctor?!1!?!

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