Treasury: Bailout Firms' CEO Pay Packages Frozen At '11 Levels
April 06 2012 - 1:30PM
Dow Jones News
The Treasury Department Friday said it froze pay packages for
chief executives at the three remaining companies that received
massive bailouts during the financial crisis and are still partly
government owned.
Overall chief executive compensation at American International
Group Inc. (AIG), General Motors Co. (GM) and Ally Financial Inc.
will not change from 2011 to 2012, Treasury said. There will be
some modification to the mix of salary and shares.
Companies receiving exceptional assistance through the Troubled
Asset Relief Program agreed to submit pay proposals to a Special
Master for Executive Compensation as part of their bailout
terms.
Treasury helps set pay packages for the top 25 executives at the
companies. Overall cash compensation for top executives shifted,
with some gaining, and some losing or staying put.
As a group, the top 25 executives at each of the three companies
saw overall direct compensation--cash plus stock--decrease 10% from
2011 levels. The decrease reflects in part departures of some of
the higher-paid employees.
AIG, GM and Ally are the only three left out of the original
seven companies where the government still owns a stake.
-By Jeffrey Sparshott, Dow Jones Newswires; 202-862-9291;
jeffrey.sparshott@dowjones.com
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