US government warns bailout firms to cut the big bucks to the bosses
Responding to growing anger about those huge pay checks to executives in companies that received those similarly huge wads of cash from the federal bailout programme, the Obama administration wants to order the companies to slash compensation of their top execs. According to Treasury sources, the seven companies that received the most assistance will have to cut pay to their 25 best-paid executives by about 90% from last year. Total compensation, including bonuses, will have to drop, on average, by about half. The companies affected are Citigroup, Bank of America, the American International Group, General Motors, Chrysler and the financing arms of the two automakers. For example, in the financial products division of AIG, no top executive will receive more than $200,000 in total compensation. And at all of the companies, anyone seeking more than $25,000 in special perks — country club memberships, private planes, limousines or company issued cars — will have to apply to the government for permission. Anyone here want to organise a study tour for those good people who wrote that frequently quoted “ministerial handbook”?