According to people familiar with the plan, the Obama administration plans to order companies that received large government bailouts last year to sharply cut compensations for their highest-paid executives. A total of seven companies will be asked to cut annual salaries of their 25 highest-paid executives by an average of about 90 percent form last year.
Sources say that the U.S. Treasury Department will announce deep pay cuts within the next few days.
Pay czar Kenneth Feinberg will handle compensations issues at the seven companies that may include Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors Co., GMAC, Chrysler and Chrysler Financial.
People familiar with the matter said that total compensation for top executives will decline on average by 50 percent.
– By: Stephen Calogera
Source: Free Press
Image Source: Flickr