Treasury Department pay czar cut cash compensation for the top 25 executives at five firms by one-third for 2010. Kenneth Feinberg announced the compensation packages for the top 25 executives at General Motors, Chrysler Group, Chrysler Financial, GMAC and AIG. Overall compensation for the executives is down 15 percent over 2009 levels.
Feinberg oversees executives compensation at five firms that received federal loans under the $700 billion Troubled Asset Relief Program.
GM sought to pay 16 of its top 25 executives more than $500,000, but Fienberg approved $500,000 or more for only eight. Average cash salaries at GM were cut by 7.5 percent for the top 25 GM executives. Fienberg approved $9 million in compensation for GM Chairman and CEO Edward Whitacre Jr.
Chrysler’s top 25 executives, whose pay was cut 18 percent last year, aren’t seeing any reduction in salaries. Just one employee is getting an overall compensation of more than $1 million and none of Chrysler’s execs earn more than $500,000. Just one executive at Chrysler is getting $500,000 in cash. Fienberg also told Chrysler that it can go ahead and award long-term restricted stock grants to employees for 2009.
Ford, which didn’t take any federal loans and is not having its executive pay capped, announced this week that CEO Alan Mullaly’s total compensation for 2009 totaled $17.9 million.
– By: Stephen Calogera
Source: The Detroit News