Pay Czar Cuts Compensation at Bailout Firms

Hundreds at Citi, AIG, GM and GMAC will see pay shaved
By Kevin Spak,  Newser Staff
Posted Dec 11, 2009 12:17 PM CST
Pay Czar Cuts Compensation at Bailout Firms
Kenneth Feinberg, Special Master for TARP Executive Compensation, testifies on Capitol Hill in Washington, Wednesday, Oct. 28, 2009.   (AP Photo/Susan Walsh)

White House “pay czar” Kenneth Feinberg announced new compensation restrictions that will cut into the checks of hundreds of highly-paid executives at bailed out firms. Except in a handful of cases, employees at Citigroup, AIG, GM, and GMAC will have their base compensation capped at $500,000, CNNMoney reports. That’ll wind up cutting into the pay of 75% of the companies’ highest-paid employees. “We want to minimize these runaway perks,” Feinberg said. (More Kenneth Feinberg stories.)

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