Pay Czar eyes Top Executives!
March 24th, 2010 - 9:30 pm ICT by Pen Men At Work
March 24, 2010, (Pen Men at Work): Finally U.S government has finally decided to deduct some part of salary for top Executives who are still getting help from federal government. This decision was taken on Tuesday and will be implied to 5 U.S firms. They have kept a bench mark for it that salary cannot be more than $500,000.
Feinberg informed everybody during one of the meetings which were held at Treasury Department that these deductions will be for around 119 executives working at American International Group, Chrysler, GMAC, General Motors and Chrysler Financial which was decided by Kenneth R. Feinberg, Administrator of Special Master for Compensation. They will reduce at least 33 percent of their salary. Besides that, Company stock for all these companies will also be declined. Feinberg was already experimenting about this matter since last year but ultimate conclusion was taken this recently. This happened when government raised their concern regarding companies which were getting help of billions of dollars from federal government.
People were suffering because of this as economical situation in U.S has not completely recovered. The top executives were spending their life lavishly though. This subject was like a burning bar on Capitol Hill. Most of the companies were not happy with Feinberg’s decisions. They said that now they will have jeopardy of losing top talent to competitors.
Most of the employees left the company as soon as they came to know about this and moved with some other firm which has not been affected by this decision.Feinberg also informed that reimbursement which was being paid since a long time for the held-over stocks could not be cashed in the near future. Incentives will also be paid depending on their performance.
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Tags: american international group, bench mark, billions of dollars, capitol hill, chrysler, chrysler financial, company stock, czar, economical situation, federal government, general motors, gmac, incentives, jeopardy, long time, men at work, pen men, salary, top executives, treasury department