Pay Czar Targets Salary Cuts

[Pirate Smile]

Source: The Wall Street Journal

WASHINGTON -- The Obama administration's pay czar is planning to clamp down on compensation at firms receiving large sums of government aid by cutting annual cash salaries for many of the top employees under his authority, according to people familiar with the matter.

Instead of awarding large cash salaries, Kenneth Feinberg is planning to shift a chunk of an employee's annual salary into stock that cannot be accessed for several years, these people said. Such a move, the most intrusive yet into corporate compensation, would mark the government's first effort to curb the take-home pay of everyone from auto executives to financial traders.

Mr. Feinberg is expected to issue by mid-October his determination on compensation packages for 175 of the most-highly compensated executives and employees at the seven firms he oversees. The companies are: American International Group Inc., Bank of America Corp., Citigroup Inc., General Motors Co., GMAC Financial Services Inc., Chrysler LLC and Chrysler Financial.

The move will further reshape pay at those firms and could complicate efforts by some of those seven companies to attract top executives and employees.



Read more: http://online.wsj.com/article/SB125478783753066235.html

[ShortnFiery]

1. Don't just TALK about it - DO IT!

:grr:

[napi21]

2. Can't attract top execs? BS! If someone is good enough to do a great job

and bring those companies to stability & then to profit, they should have enough confidence in their own abilities to make LOTS of $$ on that stock. If they don't have that ability and confidence, they're NOT top execs & not worth the damn salary to begin with!

[laughingliberal]

3. Obviously attracting these 'top executives and executives'

hasn't worked out so well for them, so far. Perhaps they need to redefine what they consider 'top.'

[Hubert Flottz]

4. "could complicate efforts by some of those seven companies

to attract top executives and employees"

If those "executives" don't want to do those jobs, maybe we can import someone to do them?

[One_Life_To_Give]

5. Just change Tax Policy

No need to try and dictate individuals compensation directly. The Tax Code is more than able to adjust the way top CEO's etc. compensation packages are set-up. Probably be good for all of us if those receiving direct compensation over X faced high rates while being able to take conciderable sums in long held positions of corporate stock were only marginally taxed.

[SpartanDem]

7. This is just for bailout companies

[Turbineguy]

6. Thus far "top" has been code for

shameless looters.