US government rocks bonus game by bringing scissors to the paper
US pay czar Kenneth Feinberg announced on Thursday that the executives in the companies saved by the government during the crisis times of late 2008 will see their compensations deeply cut. The move is partly a response to public outrage over the screamingly high bonuses rewarded by AIG, Bank of America, Citigroup, General Motors, Chrysler, GMAC and Chrysler Financial to their executives. The packages will be cut by 50% on average, with payouts by the cash-strapped companies in some instances slashed by 90%. The move comes after the prolonged public outrage. The jury is still out on the US move: there are fears it will precipitate a mass exodus of talent to stronger, better-paying companies like Goldman Sachs or JP Morgan. But at the moment, the White House is basking in the glory of stopping the indecent spending. Read more: The New York Times See President Obama's address:
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