Obama's Pay Czar Targets Salary Cuts

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WASHINGTON -- The Obama administration's pay czar is planning to clamp down on compensation at firms receiving large sums of government aid by cutting annual cash salaries for many of the top employees under his authority, according to people familiar with the matter.

Instead of awarding large cash salaries, Kenneth Feinberg is planning to shift a chunk of an employee's annual salary into stock that cannot be accessed for several years, these people said. Such a move, the most intrusive yet into corporate compensation, would mark the government's first effort to curb the take-home pay of everyone from auto executives to financial traders.

Feinberg is expected to issue by mid-October his determination on compensation packages for 175 of the most-highly compensated executives and employees at the seven firms he oversees. The companies are: American International Group Inc., Bank of America Corp., Citigroup Inc., General Motors Co., GMAC Financial Services Inc., Chrysler LLC and Chrysler Financial

So first the Obama administration (and the Bush administration before that) pushes and forces 'bailouts' of these (and other) entities. Some of these places were on the news saying that they didn't want the bailouts or the constraints that came with them. Others took the carrot that was hanging from the stick and rope.

Now the Obama administrations says it will control the salaries.

Geeeeze America ... wake the hell up .... the take over is so damn obvious.
Gobbels and Goering would be taking notes on how smoothly this operation is going.

A lot of folks will say, "I really didnt support the bailouts but now that we've done that we SHOULD limit executive pay..."

It's none of the govenments businesws however. Dont let the premise slip by you. The gov't does not belong in charge of ANYTHING!

The UK Government is planning the same deal on the next general election promise trail

news.bbc.co.uk...

To cut the pay of top civil servants < I hope that all these people who decide who gets pay cuts also include the ALL of the politicians and top level Banking Elite to get pay cuts as well?

But I doubt it very much .

Can't help but think that if the UK or the US promise to cut pay to high level business workers or ordinary civil servants but not for politicians or banking fatcats, then I think there may be some lynching going on. More hypocritical flipflopping done by TPTB would result in more 'protests'.


Edited to add: from the BBC website page.

I bet they figure out a way to 'supplement' the polticians meagre wages by more expenses claiming.?
My wife is a civil servant and on more than £18k a year, thats nice of them isn't it? They can get a 30% pay rise whereas my wife over the last 2 years has only had 2% in total, whilst all the time food and gas prices are rising , but wages aren't rising in comparison. No wonder I hate money.

[edit on 6/10/09 by DataWraith]