The Axe May Finally Be Falling on Executive Pay?

By Sadie Bass

Oct 21, 2009 3:01pm

The New York Times is reporting that Kenneth Feinberg, the administration’s man on executive compensation, has worked up a plan that would severely limit the pay and compensation of executives at the companies who received the billion dollar bailouts.  The 7 companies still being funded by the taxpayer – including Citigroup, Bank of America, GM, Chrysler and insurance giant AIG – would be forced to cut the salaries of their top 25 paid execs by 90%.  As for their bonuses and stocks compensation – those would be cut in half.  Even stipends for country clubs and cars would have to be signed off on by the Government.  This line from Stephen Labaton of the New York Times sums it up:  “The pay restrictions illustrate the humbling downfall of the once-proud giants, now wards of the state whose leaders’ compensation is being set by a Washington paymaster.” 

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