Obama Pay Czar Plans to Limit Executives' Cash Compensation

2 years ago

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Washington Reporter

President Obama limited salaries for corporate banking executives whose firms accepted bailout funds earlier this year. Now, his pay czar, Ken Feinberg, plans to crack down on cash salaries for a wide variety of executives at companies receiving large sums of government money, the Wall Street Journal reported Tuesday. In what the Journal called the administration's "most intrusive [move] yet into corporate compensation," Feinberg will limit pay at seven firms he oversees: Bank of America, AIG, Citigroup, General Motors, GMAC Financial Services, Chrysler LLC and Chrysler Financial.

Feinberg's judgment is expected to come in mid-October and will deal with the 175 highest-paid executives at the firms. Instead of receiving their usual cash salaries, executives will have percentages of their pay transferred into company stock that cannot be cashed in for several years. What percentage of the salaries will be diverted is not clear, but in some cases it could be over 50 percent.

Pay Czar Targets Salary Cuts [Wall Street Journal]

Filed Under: Economy, Obama Administration

Tagged: daily guidance, DailyGuidance, executive pay, ExecutivePay, wall street, wall street journal, WallStreet, WallStreetJournal

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