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Pay czar to slash salaries at several top gov't-backed firms

By Michael O'Brien - 10/22/09 07:27 AM ET

Obama's "special master" on pay will order deep cuts in the salaries of top executives of companies on government support on Thursday.

"Pay Czar" Kenneth Feinberg will announce cuts to salaries by an average of 90 percent, according to a variety of reports on the matter.

The cuts come after weeks of piqued outrage against Wall Street firms, which have announced record or recovering profit margins in the wake of the past year's unprecedented government support for the companies.

Feinberg will formally lay out the new pay guidelines during a briefing with reporters on Thursday, but is expected to lay out rules that would significantly rein in the total compensation packages for top officials at financial firms.

The initiative complements other efforts by the Obama administration to restructure regulations on executive compensation more broadly, though the president and congressional leaders have been wary of too stringent of regulations on firms not receiving government support.

Senate Minority Leader Mitch McConnell (R-Ky.) said Wednesday that the government "ought to have some say" on compensation for officials at firms on government support, while House Speaker Nancy Pelosi (D-Calif.) said Wednesday that large bonuses for Wall Street officials had made her angry.

President Barack Obama had come under scrutiny lately for having raised money from some of those Wall Street officials while pushing new reforms for the companies, as well.

Source:
http://thehill.com/blogs/blog-briefing-room/news/64253-pay-czar-set-to-slash-salaries-at-top-govt-backed-firms

Comments (9)

How about slashing Senators and Congressman Salaries and benefits by 50%, Sounds like a good place to start. They were just as big a cause of the rape of the taxpayers as Wall StreetBY Jake2 on 10/22/2009 at 09:29
Yes I think recieving 400% above what the average workers pay is more then extravagant. But since were taking about fair and reasonable. Then here are the reforms for our represenatives in the senate and house who decide they should only have to work a three day week instead of a five day week. (1) take a pay cut since your work week is shorter and you are working less hours. (2) If working less then 40 hours forfeit your benefit package because you are now considered a part time worker.BY D.P on 10/22/2009 at 09:57
"Special Master", "Pay Czar", "Water Boy"… If part of the logic here is that these firms received TARP money and therefore, Special Masters can determine pay, one would have to ask what else can they determine — hiring policies/practices, purchase of lobby furniture? If small businesses receive TARP money via an itermediary institution will they come under the watchful eye of perhaps, an even more special Small Business Special Master? I think I've seen this in movies — local business borrows money from local wise guy…Wall Street needs to clean up its act and limit its greed and government needs to go back to the business of governing in the best interest of the people. That's a movie I would pay to see. This is so B level.BY grace on 10/22/2009 at 10:17
Cutting back on the vultures on Wall Street is far over due.This has been going on for the last 20 years or more,it's a wonder the balloon didn't burst earlier.Wall Street is not all to blame, we have government regulators that instead of doing their job, buddied up with these big company boards and got to like the thrill of it all,say nothing about the bennies that may have gone their way.One aspect of this whole situation bothers me right to the core,why are the same regulators still at the same job, that they failed at for so long.Is there any oversight in place for these people ?BY Rick C on 10/22/2009 at 10:55
I have noticed that the President has a "tell" when he is lying. Watch for a small smerk and what he is saying is probably a lie.BY Jim on 10/22/2009 at 11:13
Watch as these same people flood the market with resume's. If I ain't getting paid for my time, I'm going elsewhere. I don't care where you work, if some government lacky legally decided you're only going to recieve half of your paycheck at the end of the peroid (after taxes), you'd quit and find somewhere where they don't/can't do that. We're from the Government, and we're here to help!!BY Jeff on 10/22/2009 at 13:01
How dare you Wall street!BY Robert on 10/22/2009 at 13:07
D.P stated a desire for our Congresspeople and Senators to work a 5 day work week. I would prefer that they both just cash their checks and stay as far from the Capitol as possible. Let's lend our support for the 5 day work week for the 112th Congress as they will "inherit" a huge mess to "mop up".BY Fishygov on 10/22/2009 at 14:24
Has anyone read the Constitution lately?This administration has ripped it to pieces.This violates two provisions of the Constitution.BY Jerry Garretson on 10/23/2009 at 17:25

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