The Treasury Department announced earlier today that they are freezing CEO pay at GM, AIG, and Ally Financial (formerly GMAC).
The pertinent part of the release:
1. Overall CEO Compensation Frozen at 2011 Levels: The overall CEO compensation packages payable by AIG, Ally Financial and GM have not increased. Although there has been some modification in the mix of stock salary and long-term restricted stock for the CEO group, the overall amount of CEO compensation is frozen at 2011 levels.
The release noted that the compensation structure for 2012 would be the same as 2009 – 2011; 83% of pay will be in the form of stock and is not redeemable for 3 years.
The report revealed that AIG has accomplished the most to repay what it owes the Federal government:
3. Companies Have Made Progress Repaying Taxpayer Investments: AIG has reduced its obligations to the U.S. government (including through cancellation of undrawn commitments) by more than 75 per cent. Treasury has also recovered nearly half of the TARP funds invested in GM and nearly one-third of the TARP funds invested in Ally Financial through repayments and other income.
Finally, the report said compensation for the top 25 executives at each company was collectively being reduced by 10% from 2011 levels.
It’s nice to know that even when it comes to executive pay at TARP companies, those at the very top get preferential treatment over those further down the ladder.
The full release can be read here.