US pay tsar cuts rewards for bosses at bailed-out firms
US President Barack Obama's pay tsar has told executives at five bailed-out firms, including AIG, GM and Chrysler, to take a pay cut. Kenneth Feinberg has ordered the 2010 pay of almost 120 bosses at the firms to be shaved by an average of
US President Barack Obama's pay tsar has told executives at five bailed-out firms, including AIG, GM and Chrysler, to take a pay cut.
Kenneth Feinberg has ordered the 2010 pay of almost 120 bosses at the firms to be shaved by an average of 15%.
Earlier this year AIG made substantial bonus payments on old contracts.
At the time, Mr Feinberg called these "outrageous" and promised that such largess would soon become a thing of the past.
The five companies are the insurance giant AIG, and carmakers GM and Chrysler as well as GM's former finance arm, GMAC and Chrysler Financial.
AIG was bailed out with $182.3bn (£121bn) of US aid in 2008, and staff paid back a proportion of their bonuses for 2009.
The company, when contacted by the BBC, said it had no comment to make.
GM said in a statement: "The compensation determination issued by Mr Feinberg is consistent with GM's longstanding commitment to long-term incentives and performance-based compensation."
Chrysler also provided a statement, saying it had helped to develop the compensation plan.
It added: "We owe a debt of gratitude to the US tax payers for their support and intend to live up to the expectations of those who made sacrifices on our behalf."
Mr Feinberg oversees the pay deals of senior bosses at banks and other financial groups who have received financial support from the US government under the Troubled Asset Relief Program (Tarp).
His formal job title is special master for Tarp executive compensation.