The AP reports that top executives at three companies bailed out by taxpayers during the 2008 financial crisis have been ordered to take pay cuts by the federal government, the Treasury Department said Friday.
The Treasury said annual compensation for nearly 70 executives at the American International Group, Ally Financial and General Motors was reduced by 10 percent. Pay for the chief executives of the companies was frozen at 2011 levels.
All three companies have yet to repay what they received from the $700 billion bailout, and their executives are subject to pay cuts as a result. A.I.G. still owes about $50 billion. General Motors owes about $25 billion, and Ally Financial about $12 billion.
Even with the compensation freeze, General Motors’ chief executive, Daniel F. Akerson, is expected to earn $9 million in stock and salary this year. Ally Financial’s chief, Michael A. Carpenter, is set to earn $9.5 million in total compensation. And A.I.G.’s chief, Robert H. Benmosche, is expected to make $10.5 million…
Find out more at http://www.nytimes.com/2012/04/07/business/gm-aig-and-ally-are-forced-to-cut-executives-pay.html
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