Image Source: Jalopnik 

BY MADISON MACK
ANCHOR NATHAN BYRNE


The Treasury Department is cutting pay for top executives at three bailed-out companies.  San Diego’s KSWB reports.

“The firms AIG, Ally Financial and GM all received bailout money from the government during the financial crisis but have yet to fully repay the funds. For 2012 each CEOs pay will be frozen at 2011 levels.”

The Treasury helps dictate the pay packages for the top 25 executives at each company as part of oversights added to the 2008 TARP bailouts. So how much of a hit are they taking? Daily Political has the numbers.

“The pay level of the lower executives at the three firms, the five senior executives and the next highest 20 earners will drop by 10% from 2011, on average…. GM’s top executive … will earn $9 million. While the lowest paid of the executives at GM will only take home $1.3 million."

The cuts come despite a year of record profits for GM. The company earned $7.6 billion last year and their stock has shot up 22 percent in 2012. But even with the success, Business Insider reports — all three companies still owe taxpayers a few bucks.

“AIG has reduced its obligations to the U.S. government … by more than 75 percent.  Treasury has also recovered nearly half of the TARP funds invested in GM and nearly one-third of the TARP funds invested in Ally Financial through repayments and other income.”

The Huffington Post reports GM CEO Dan Akerson has criticized the pay limits in the past saying…

“…GM is losing some of its top talent in its executive ranks because of the government-imposed rules."

And the General Motors-centric blog GM Authority agrees, noting — this is just what happens what a company gets in bed with the government.

“In this particular instance, the government’s move seems somewhat shortsighted, given the fact the GM is doing very well financially, and otherwise. … But good luck attaining top talent, making sure said talent preforms at its absolute best, and achieving record anything with silly limits on performance-based compensation.”


 

 

Treasury Dept. Cutting Pay for Bailout Firms' Top Executives

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Apr 9, 2012

Treasury Dept. Cutting Pay for Bailout Firms' Top Executives

 

Image Source: Jalopnik 

BY MADISON MACK
ANCHOR NATHAN BYRNE


The Treasury Department is cutting pay for top executives at three bailed-out companies.  San Diego’s KSWB reports.

“The firms AIG, Ally Financial and GM all received bailout money from the government during the financial crisis but have yet to fully repay the funds. For 2012 each CEOs pay will be frozen at 2011 levels.”

The Treasury helps dictate the pay packages for the top 25 executives at each company as part of oversights added to the 2008 TARP bailouts. So how much of a hit are they taking? Daily Political has the numbers.

“The pay level of the lower executives at the three firms, the five senior executives and the next highest 20 earners will drop by 10% from 2011, on average…. GM’s top executive … will earn $9 million. While the lowest paid of the executives at GM will only take home $1.3 million."

The cuts come despite a year of record profits for GM. The company earned $7.6 billion last year and their stock has shot up 22 percent in 2012. But even with the success, Business Insider reports — all three companies still owe taxpayers a few bucks.

“AIG has reduced its obligations to the U.S. government … by more than 75 percent.  Treasury has also recovered nearly half of the TARP funds invested in GM and nearly one-third of the TARP funds invested in Ally Financial through repayments and other income.”

The Huffington Post reports GM CEO Dan Akerson has criticized the pay limits in the past saying…

“…GM is losing some of its top talent in its executive ranks because of the government-imposed rules."

And the General Motors-centric blog GM Authority agrees, noting — this is just what happens what a company gets in bed with the government.

“In this particular instance, the government’s move seems somewhat shortsighted, given the fact the GM is doing very well financially, and otherwise. … But good luck attaining top talent, making sure said talent preforms at its absolute best, and achieving record anything with silly limits on performance-based compensation.”


 

 

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