Pay Czar Quietly Meets With Rescued Companies

[ensho]

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/08/AR2009080802532.html?hpid=topnews


Deadline to Propose Compensation Looms


President Obama's compensation czar has been meeting for weeks with executives at some of the country's largest and most troubled companies as they face a Thursday deadline to propose how much they will pay their top employees.

Kenneth R. Feinberg has the unprecedented task of deciding executive compensation at seven companies that received large government bailouts. His meetings with American International Group, Citigroup, Bank of America, General Motors, Chrysler, Chrysler Financial and GMAC have been conducted in secret, with neither Feinberg nor the companies willing to say much in public.

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Feinberg, who has sole discretion to set compensation for the top 25 employees of each of those companies, has 60 days to make a determination after the proposals are complete. Under the administration's initiative to curb excessive pay practices, each of the seven companies must also receive his approval for how it pays the rest of its 100 most highly compensated executives and employees. The companies must submit pay plans for these employees by Oct. 12.

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Legally, Feinberg cannot prohibit bonuses that were promised before the February passage of the stimulus bill, which included new compensation restrictions for companies receiving government rescue funds. That includes, for example, retention payments to AIG employees. He could try to renegotiate those bonuses if he thinks they're against the public interest, according to the rules on new compensation.

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On Thursday, Feinberg should have seven proposals on his desk, each with its own set of potential land mines.
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he probably needs a bodyguard

[tj2001]

1. Send those fuckers to China, and replace them with somebody from the middle management

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