Bank of America Corp. (NYSE:BAC) CEO Ken Lewis is not the only banker to see his salary slashed by the Obama administration's pay czar, Kenneth Feinberg. He reportedly has ordered the seven firms receiving the largest sums of government aid to slash compensation for the 25 highest-paid employees by up to 90%. However, he doesn't end there. He also allegedly targeted cuts for the remaining highest-paid 175 executives at these firms by up to 50%. Additionally, he is demanding corporate-governance changes at the firms such as separating the chairmanship role from the CEO role as well. The seven companies are:
- American International Group Inc. (NYSE:AIG)
- Bank of America Corp.
- Chrysler Group LLC
- Chrysler Financial
- Citigroup Inc. (NYSE:C)
- General Motors Co.
- GMAC Inc.
The folks receiving the sharpest slap on the wrist are the AIG Financial Products Corp. employees, who are expected to be limited to $200,000 in compensation. Perhaps they are being singled out because by all accounts they are the people believed to have doomed AIG.
If these reports are true, right about now, it must feel pretty good being the 201st highest-paid employee at one of those firms. - Matthew Wurtzel
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What a bad move. You want to see good talent leave some of the worst companies in America this is a sure way to do it.