The Obama administration is ordering companies that received the most aid to decimate the compensation to their highest paid executives.
The New York Times is reporting that under the plan the seven companies that received the most tax payer money will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 per cent from last year. Their total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 per cent.
Who is on the list?
- Bank of America
- American International Group
- General Motors and its financing arm
- Chrysler and its financing arm
The Times says the Treasury will formally announce the plan in the next few days.