And so it begins... pay offically limited

[Dredly]

http://www.foxnews.com/politics/2009...omakers-banks/

Pay Czar Caps Cash Salaries at $500,000 for Bailed-Out Automakers, Banks

AP

The Obama administration's pay czar is limiting the cash compensation for executives at companies that received the largest taxpayer bailouts to $500,000.


WASHINGTON -- The Obama administration's pay czar is limiting the cash compensation for executives at companies that received the largest taxpayer bailouts to $500,000.

The 25th through the 100th top earners at Citigroup, GMAC, American International Group and General Motors also must take more than half their compensation in stock, and at least half must be delayed for three or more years, said Kenneth Feinberg, the Treasury Department's Special Master for Executive Compensation.

About 12 executives were granted exemptions to the $500,000 cash cap because they were necessary for the companies to "thrive, be able to compete, and not lose key people," he said Friday.

The new rules will only apply to the second half of December, and will not affect what the employees already have been paid this year.

The rules will affect many workers' year-end bonuses and stock grants, Feinberg said. They also will serve as a starting point for negotiations next year over pay packages for 2010.

Feinberg already announced specific pay packages for the top 25 earners at firms he oversees.

His rulings don't apply to Bank of America because its bailouts were repaid this week. Chrysler and Chrysler Financial also were exempt because executives there made less than $500,000.

Under the new rules, cash can make up only 45 percent of a person's pay. At least half of total compensation must be "long-term," and cannot be redeemed for at least three years. And all incentive pay must come from a pool whose size is based on earnings or another performance measure.

Fringe benefits like the use of private jets will be limited to a value of $25,000 per year.

Unlike the pay packages for the top 25 earners, Friday's rules mostly will be implemented by the companies. But Feinberg said he did review all the requests for cash salaries in excess of $500,000 per year.

He reviewed dozens of requests but only granted about 12. Of those, all but one will earn between $500,000 and $950,000. The remaining person will earn about $1.5 million. He did not identify the individuals or say what companies they work for.

Feinberg did say that some of the exemptions were granted for AIG, which received government support worth up to $182 billion. Large bonuses at the firm sparked outrage earlier this year.

"It was not only AIG" that wanted the employees to earn more than the $500,000 cap, Feinberg said. "It was the Federal Reserve, it was the Treasury Department."

Going forward, the independent directors on the companies' compensation committees will have to approve such exemptions. Feinberg will continue to oversee them.

Wow... just wow.

[ChamberedRound]

Does the O administration really think this is going to stop anyone? If there's one thing obscenely rich people are good at, it's finding ways to keep their money, and keep getting paid. Especially those that work with money on a daily basis.

End-arounds on this are only a matter of time.

[adymond]

Does the O administration really think this is going to stop anyone? If there's one thing obscenely rich people are good at, it's finding ways to keep their money, and keep getting paid. Especially those that work with money on a daily basis.

End-arounds on this are only a matter of time.

It goes back to what a hedge-fund manager said in an interview I saw. If the regulators were as good with money and finding ways to make/keep/hide it they would be working in the private sector not in government. All this move does is make the shit go further out of sight and the ability of a regulator to control.

All that said I can't believe this is constitutional and I can only hope someone challenges it and wins.

[ReconLdr]

IMHO, these executives aren't worth the shitton of money they get paid. If these people were worth $500k+ incentives per year, why did we have to bail out the company? I think if I ran my department into financial ruin, I would just get fired, not bailed out and have my boss fighting to pay me more. Am I the only one who sees it this way? I guess smart people can be very dumb.(not sure which group I am in)

I think it is fucking wrong for the gubment to determine how much people should get paid.

[adymond]

IMHO, these executives aren't worth the shitton of money they get paid. If these people were worth $500k+ incentives per year, why did we have to bail out the company? I think if I ran my department into financial ruin, I would just get fired, not bailed out and have my boss fighting to pay me more. Am I the only one who sees it this way? I guess smart people can be very dumb.(not sure which group I am in)

I think it is fucking wrong for the gubment to determine how much people should get paid.

Your last line is right, but the sentiment that these executives aren't worth what they make is sort of silly IMO. I understand what you mean, but the reality is the market will market will dictate what they make. If they suck they won't be making that money for long.

[PocketProtector]

Tyranny Tyranny Tyranny.....The Revolution started over far less Tyranny than we see today ! But THAT was the Land of the FREE and the home of the BRAVE>

[ReefBlue]

What is the big deal?

Without the government provided money, their salary would be zero.


It isn't like they're trying to limit the salaries at companies that . . . what is the phrase I'm looking for . . . .

Oh yeah:


Didn't take government money.

[ham385]

Your last line is right, but the sentiment that these executives aren't worth what they make is sort of silly IMO. I understand what you mean, but the reality is the market will market will dictate what they make. If they suck they won't be making that money for long.

Not so, at least I don't believe so. how many of the execs whose leadership contributed to our current economic woes have been fired? I'm not aware of any

[arjohnson]

What is the big deal?

Without the government provided money, their salary would be zero.


It isn't like they're trying to limit the salaries at companies that . . . what is the phrase I'm looking for . . . .

Oh yeah:


Didn't take government money.

You really want to know what the big deal is? I'll tell you what it is, it's all about CONTROL, and just wait til they take over health care and you have some 50K a year butchers(doctors)performing life saving surgerys.

[PocketProtector]

What is the big deal?

Without the government provided money, their salary would be zero.


It isn't like they're trying to limit the salaries at companies that . . . what is the phrase I'm looking for . . . .

Oh yeah:


Didn't take government money.

Many of the Organizations were forced to take the money. And this is why. This was the plan all along.