Feds cut pay of execs at bailed out firms

[MindMover]

Source: CBS

CBS/AP) WASHINGTON - The federal government has ordered executives at three companies bailed out by U.S. taxpayers during the 2008 financial crisis to take a pay cut.

The Treasury Department says nearly 70 executives at American International Group Inc. (AIG), Ally Financial Inc., and General Motors Co. (GM) had their annual compensation reduced by 10 percent. The CEOs of each company had their pay frozen at 2011 levels.

All three companies have yet to repay what they received from the $700 billion bailout and therefore are subject to pay cuts.

Morgan Stanley CEO Gorman paid $13 million in 2011
JPMorgan Chase CEO Dimon paid $23 million in 2011

Since it was rescued under the Troubled Asset Relief Program after the housing crash, AIG has reduced what it owes the U.S. government by more than 75 percent, according to the Treasury. The insurance company still owes taxpayers around $50 billion.

The government has recovered nearly half of the funds invested in GM, which owes about $25 billion, and nearly one-third of the money injected into Ally Financial, which owes about $12 billion.

Read more: http://www.cbsnews.com/8301-505125_162-57410584/feds-cut-pay-of-execs-at-bailed-out-firms/?

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[freshwest]

1. GOP squeals: Socialism! Unpatriotic! Treason*!

*Anything that goes against our Republican overlords.

[RC]

2. Those same Execs need to be investigated for possible criminal wrong doing

for those companies needing to be bailed out in the first place.

[Uncle Joe]

3. Kicked and recommended.

Thanks for the thread MindMover and the ABBA song was a nice touch too.

[aquart]

4. Not enough, but something.

A recognition of the principles of common sense, merely.

[zeemike]

5. How do you expect them to retain their talent?

I am sure there are many companies out there waiting to snap them up at 13 mil a year.
But they will will probably stay and get even more in a performance bonus.

[SemperEadem]

6. It takes talent to make money

and keep a company in the black.

any dolt can lose and waste money and mismanage it into the red---which is what these idiots have done.

There is no talent at these companies.

[Tx4obama]

7. K&R n/t

[Quantess]

8. Good news.

[wordpix]

9. Big whoop, does this include the CEO's stock options?

While I applaud the cuts, they don't make much of a dent, esp. b/c most of the CEO's compensation is in stock and if they're not getting "stock incentives" cut, it's almost nothing. Even with teh stock options, a cut of a $million on a $10 million total is nothing when your company owes billion$.

http://www.freep.com/article/20120407/BUSINESS0101/204070376/U-S-freezes-Akerson-s-pay-limits-what-GM-execs-make?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

snip: Akerson's 2012 pay package will remain $9 million. In 2011, that comprised a $1.7-million salary and $7.3 million in stock-based incentives. Michael Carpenter, CEO of Ally Financial, formerly GM financing unit GMAC, is set to earn $9.5 million in total compensation. AIG CEO Robert Benmosche will make $10.5 million.

[Cal Carpenter]

10. Oh no, now I only make $9 million instead of $10 million

or

Shoot, I only made $13 million last year. I can't believe I'm not getting a raise! How in the world will I feed my children or afford the doctor?!1!?!