Thursday, October 22, 2009

White House To Cut Executive Pay At Bailed Out Firms

Great News:

WASHINGTON — Responding to the furor over executive pay at companies bailed out with taxpayer money, the Obama administration will order the firms that received the most aid to slash compensation to their highest-paid employees, an official involved in the decision said on Wednesday.

The plan, for the 25 top earners at seven companies that received exceptional help, will on average cut total compensation this year by about 50 percent. The companies are Citigroup, Bank of America, American International Group, General Motors, Chrysler and the financing arms of the two automakers.

Some executives, like the top traders at A.I.G., will face tight limits on their pay. In addition, the top-paid employees at all the affected companies will face new limits on their perks.

The plan will also change the form of the pay to align the personal interests of the executives with the longer-term financial health of the companies. For instance, the cash portion of the executives’ salaries will be slashed on average by 90 percent, and the rest will be replaced by stock that cannot be sold for years.
Equally commendable is the fact that Obama's pay czar made these decisions on his own, and didn't even have to tell them to Obama before he went public. Well done all around.


  1. conservatives are going to whine about this so much that by the end of the day its going to sound like obama:

    1. burned down executives mansions
    2. executed CEOs, charged cost of bullet to their families
    3. razed wall street, salted the earth so that nothing can ever grow there again

    callin it right now

  2. btw these are all things that should actually happen

  3. and you can see it in Michael Moore's NEW new Movie. Capitalism: A Painful Divorce