The United States Treasury today announced pay rules for lower-ranking GM and GMAC execs, though Chrysler Group and Chrysler Financial were exempt ftom the new rules because they fell below the half a million dollar threshold.
Limits on the top 25 execs at each company had long been set. The new rules apply to the next 75 highest-paid employees, as long as their total pay exceeds $500,000.
Kenneth Feinberg, special master for executive compensation for the treasury has said that he would work with GM in its search to replace recently resigned CEO Fritz Henderson. He said ‘lateral’ compensation for a new chief executive would be considered.
Feinberg also state that it would have to revisit the pay limit issue and decide whether or not they still apply once the $6.7 billion in loans is paid back by June 2010, as originally planned.
-By: Stephen Calogera