Financial Regulatory Forum

U.S. slashes pay at seven bailed out firms, cuts cash up to 90 percent

   WASHINGTON, Oct 22 (Reuters) – The U.S. Treasury’s pay czar on Thursday slashed overall pay by more than half for top earners at seven companies that received massive taxpayer bailouts, and ordered that most of their salaries be paid in the form of long-term company stock. Kenneth Feinberg, charged with approving or renegotiating pay contracts for the 25 highest-paid employees at the seven banks and automakers, said their cash compensation for 2009 would drop by more than 90 percent compared to 2008.

(more…)

Top pay at bailed out U.S. companies to be cut – sources

Lawrence H. Summers, Director of the White House's National Economic Council, speaks about the a luncheon hosted by "The Economist" magazine at Pace University in New York October 16, 2009. (File Photo) REUTERS/Nicholas Roberts (UNITED STATES BUSINESS POLITICS) By Karey Wutkowski and Steve Eder
WASHINGTON/NEW YORK, Oct 21 (Reuters) – Top earners at financial and auto companies bailed out by the U.S. government will see their pay slashed under an Obama administration plan aimed at addressing public outrage over eye-popping paychecks, two sources familiar with the matter said on Wednesday.

(more…)

U.S. pay czar may issue rulings before Oct. 30 deadline

By Karey Wutkowski
WASHINGTON, Oct 20 (Reuters) – The Obama administration’s pay czar said on Tuesday he may publicly release his rulings on the compensation packages for top earners at bailed-out firms before his Oct. 30 deadline.

(more…)

US Congress to probe compensation at rescued companies

WASHINGTON, Oct 14 (Reuters) – The U.S. Congress will soon probe executive compensation at companies such as American International Group Inc and Bank of America Corp receiving significant taxpayer funds, the chairman of the House Oversight and Government Reform panel said on Wednesday.
(more…)

US “pay czar” Feinberg expecting heat for rulings

By Karen Pierog and Steve Eder
CHICAGO/NEW YORK, Sept 30 (Reuters) – The Obama administration’s pay czar joked Wednesday that he might have to move to Pluto to escape the fallout from his first batch of compensation decisions, which are expected in October.

(more…)

U.S. “pay czar” Feinberg using formulas, not caps

By Steve Eder
NEW YORK (Reuters) – President Barack Obama’s “pay czar” said on Friday he was using formulas and data analysis to determine executive compensation at government-rescued firms, rather than relying on pay caps.

Kenneth Feinberg, appointed in June to decide compensation packages for the highest-paid personnel at companies that received U.S. government bailouts, said his team of 15 people is reviewing pay data submitted by seven firms that needed extraordinary assistance, a group that includes Citigroup Inc, Bank of America Corp, and American International Group Inc . (more…)

Obama’s “pay czar” says weighing power to claw back compensation

By Steve Eder

MARTHA’S VINEYARD, MASSACHUSETTS (Reuters) – Kenneth Feinberg, the Obama administration’s pay czar, said on Sunday he has broad and “binding” authority over executive compensation, including the ability to “claw back” money already paid, and he is weighing how and whether to use that power. (more…)

  •