You may recall that President Obama has appointed a “Pay Czar” to “review” the compensation packages enjoyed by executives working for companies suckling on the TARP-shaped teat. As Bloomberg reports, “Feinberg, the Obama administration’s ’special master’ on executive pay, is due to receive compensation proposals by tomorrow from Citigroup Inc., American International Group Inc., Chrysler LLC, Chrysler Financial Corp., Bank of America, GMAC LLC and General Motors Corp. The companies must tell him how they plan to pay the 25 top-earning employees. Feinberg will rule on the plans within 60 days after they’re completed . . . In a second phase, Feinberg will decide on pay packages for the next 75 highest-paid employees at the companies.” In anticipation of the gravy train pulling into the station, Chrysler said “it will adhere to the requirements outlined in its $12 billion U.S. government bailout”—presumably as long as they don’t apply to their new Italian employees (wink wink). “GM, the recipient of $65 billion in U.S. aid, said today that it has submitted its proposals. It doesn’t plan to make the submission public.” Looks like GM CEO Fritz Henderson had his fingers crossed when he promised—under oath before the Senate—that the nationalized automaker would be transparent to taxpayers. Huh.
5 Comments on “GM’s Transparency Pledge Doesn’t Extend to Executive Pay Proposal...”
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Who was the first pay czar at the Constitutional Convention?
The financial condition of those companies prove that all of their top executives are way overpaid. Anyone here on TTAC could review those pay packages in a couple of hours, not 60 days.
Who was the first pay czar at the Constitutional Convention?
If you go to the bank for a loan, the bank gets to look and make suggestions (or outright requirements, if you’re in a sufficiently sorry state) about how you are going to spend it’s money.
The government, in this case, is just another bank. If you don’t want them snooping around a corporation’s books, perhaps said corporation shouldn’t have gone asking in the first place?
You’ll note that they’re not putting such restrictions on, say, Ford. Or Microsoft. Or any of the companies that didn’t mainline government funds.
I’m waiting for Obama to pay GM several billion more “under the table” to avoid the backlash from the taxpayers. Because we would find out they are not self sufficient yet. Wouldn’t that be a bomb to blow up ,us finding out that 20 billion (at least )was granted to GM, and all without us knowing about it. I think it’s gonna happen.
…doesn’t plan to make the submission public
FOIA request, anyone?