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The "pay czar" Kenneth Feinberg
While the recession and the fallout resulting from the 2008 financial collapse might be easing, ramifications for the companies who received government assistance continues to be felt thanks to the Obama Administration’s “pay czar.” Ken Feinberg announced yesterday that his $500,000 restriction on cash salaries will cover 82% of the 119 top executives at the five companies he oversees. AIG, the bailed-out insurance giant, had been chaffing under Feinberg’s pay restrictions and was seeking to allow its executives to earn more than the cap, but for the most part the pay czar stood firm. Going forward Feinberg intends to reduce total executive compensation at AIG, GMAC and Chrysler Financial by 15%--is this proper punishment for being saved by taxpayers?
Kenneth Feinberg, Special Master for TARP Executive Compensation, or the Obama administration’s “Pay Czar”; adjunct professor of law at Georgetown University Law Center