Sign in Subscribe
Automobile industry

Obama Administration Orders Compensation Cuts for Top Executives in Seven Firms

Strategic Insights

— 1 min read

The Obama administration has issued an order requiring seven major companies that received significant federal aid to reduce compensation for their highest-paid executives. The affected companies are Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler, and Chrysler Financial. The move is part of the government's 700-billion-dollar financial bailout package, aimed at ensuring that these companies return taxpayer dollars as soon as possible.

Key Takeaways:

  • The order was made by Kenneth Feinberg, the special master at Treasury, appointed to handle compensation issues related to the bailout package.
  • The seven companies, which received the most federal aid, were instructed to slash the compensation of their highest-paid employees.
  • Treasury Secretary Timothy Geithner welcomed the decision, stating that Kenneth Feinberg had done a commendable job in applying strong compensation standards to the companies that received exceptional assistance.
  • The goal of the order is to facilitate the return of taxpayer dollars from the companies as soon as possible.
  • This move aims to address concerns about executive compensation in the context of the financial bailout package.
  • It is part of the Obama administration's efforts to hold companies accountable for their use of taxpayer funds.

Specific names, programs, and initiatives mentioned include:

  • Kenneth Feinberg, special master at Treasury
  • Timothy Geithner, Treasury Secretary
  • Bank of America Corp.
  • American International Group Inc.
  • Citigroup Inc.
  • General Motors
  • GMAC
  • Chrysler
  • Chrysler Financial

Statistics:

  • The bailout package worth 700 billion dollars
  • Seven companies were ordered to reduce compensation: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler, and Chrysler Financial.
  • The order aims to ensure the return of taxpayer dollars as soon as possible.
  • No specific dates or currency values were mentioned in relation to the companies' earnings or the bailout.

Sources:

  • Xinhua via COMTEX
  • XINHUA NEWS AGENCY, Copyright 2009
  • Comtex SmarTrend Alert (as cited in the provided text)
  • Comtex News Network, Inc.
  • www.mysmartrend.com
  • SmarTrend is a registered trademark of Comtex News Network, Inc.

Read more