On Ice: Treasury Freezes Pay for Bailed out CEOs
- Posted on April 6, 2012 at 8:30pm by
Becket Adams
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GM CEO Dan Akerson, AIG CEO Robert Benmosche, & Ally CEO Michael Carpenter
Top executives at three companies bailed out by U.S. taxpayers during the 2008 financial crisis were ordered to take pay cuts by the federal government.
“It is the second straight year the government’s special master [a position created by the Obama administration to monitor pay practices for bailed out companies], Patricia Geoghegan, has taken this step,” CNN Money reports.
The Treasury Department says nearly 70 executives at American International Group Inc. (AIG), Ally Financial Inc. and General Motors Co. had their annual compensation reduced by 10 percent. The CEOs of each company had their pay frozen at 2011 levels.
All three companies have yet to repay what they received from the $700 billion bailout and therefore are subject to pay cuts.
AIG still owes taxpayers around $50 billion. General Motors owes about $25 billion. Ally Financial about $12 billion.
“The three were part of group of seven firms that got so-called exceptional assistance in the form of taxpayer-financed bailouts during the financial crisis,” Reuters reports. “Four of the original seven — Bank of America, Citigroup, Chrysler Financial and Chrysler — have already repaid their TARP money and left the program.”
Of course, this isn’t to say that the CEOs at these companies won’t be paid well this year.
General Motors CEO Daniel F. Akerson is expected to earn $9 million in stock and salary this year. Ally Financial’s CEO Michael A. Carpenter is set to earn $9.5 million in total compensation. AIG CEO Robert Benmosche will make $10.5 million.
“A spokesperson for Ally Financial said its executive pay ‘continues to be in line with the stated guidelines for TARP companies’ and said its management team was focused on repaying the remaining TARP funds to Treasury,” Reuters reports.
“The other 69 executives are among the three firms’ senior executive officers as well as the most highly compensated employees who work under them,” the report adds.
Akerson has criticized the pay limits, saying GM is losing some of its top talent in its executive ranks because of the government-imposed rules. The Detroit automaker received $49.5 billion from the government in 2008 and 2009.
“It’s the reality we have to live with, as long as we’re under the restrictions,” said GM spokesman Jim Cain.
AIG declined to comment on the pay changes.
The Treasury ensures us the three firms are “making progress” in repaying their taxpayer funds, Reuters reports.
“It said AIG has reduced its obligations to the U.S. government by more than 75 percent, while Treasury has recovered nearly half the TARP funds it put into GM and close to one-third of the money that went to Ally Financial,” the report claims.
The Associated Press contributed to this report.
(H/T: CNBC)
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Comments (44)
Paul
Posted on April 7, 2012 at 10:59pmIt’s really kinda funny, they have been used and s c r e w e d Too !
How’s it working out fellas ?!
Report Post »SickandTiredAmerican
Posted on April 7, 2012 at 8:15pmThis line of the article says it all, “Top executives at three companies bailed out by U.S. taxpayers during the 2008 financial crisis were ordered to take pay cuts by the federal government.”
#1 The tax payer should not responsible for bailing out any company, EVER!
#2 The executives who did not manage their companies with their customers and shareholders well-being in mind should be replaced by those shareholders. Not given huge bonuses!
#3 The federal government SHOULD NOT be involved in the management of any company, period!
Anyone know the definition of Solialism? No?
… any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods … [Webster]
Go ahead, Vote Obama in November!
Report Post »Tom70
Posted on April 7, 2012 at 12:53pmOn Ice only until the Emaculated one is re-crowned(NOT)! If there is a God then the King will fail Long live the Republic with out the Socilist agenda.
Report Post »fover10
Posted on April 7, 2012 at 11:15amTEN REASONS TO VOTE IN NOVEMBER:
10. O’s Foreign Policy… featuring the “O-pology Tour” and secret deals with Russia
9. O’s National Security Policy… Aka Fast and Furious
8. O’s Domestic Energy Policy that gave us $4 and $5 gas at the pump
7. Crony capitalism that brought us political pay-to-play deals that saw billions of taxpayers $$$ go to failed Green companies like A123 Systems, Evergreen Energy, Amonix Inc., Beacon Power Corp, Ener1, Electric, Solyndra, etc. in return for political favors
6. A housing market in the tank
5. Over-regulation that cripples American businesses
4. Czars with constitutional decision-making authority (without having to hassle with silly old Congress)
3. O’s/China Foreign Aid Policy… I.O.U. $$ Trillions (not sure how many 0’s to use)!
2. Unemployment somewhere between 8% and 18% (does anyone even know the real number?)
1. Uncontrolled spending that brought us $15.6 Trillion National Debt, $1 Million office parties, $4 Million dollar family vacations, and O’Care with its Trillion $$$ price tag!
WAKE UP AMERICA… VOTE “O” OUT OF OFFICE WHILE WE CAN!!!
Report Post »Apple Bite
Posted on April 7, 2012 at 9:31amIt’s a political ploy. He did nothing about Solyndra or the other various Green Energy companies that closed their doors.
Solar Trust of America: FAIL
Report Post »Bright Source: FAIL
Solyndra: FAIL
LSP Energy: FAIL
Energy Conversion Devices: FAIL
Abound Solar: FAIL
SunPower: FAIL
Beacon Power: FAIL
Ecotality: FAIL
A123 Solar: FAIL
UniSolar: FAIL
Azure Dynamics: FAIL
Evergreen Solar: FAIL
Ener1: FAIL
EqualJustice
Posted on April 7, 2012 at 10:07amOBAMA = EPIC FAIL. Time to FINALLY take out the garbage and DRAIN that Pelosi SWAMP!
Report Post »Apple Bite
Posted on April 7, 2012 at 10:37amRaser Tech: FAIL
Report Post »SpectraWatt: FAIL
Mountain Plaza Inc.: FAIL
Olsen’s Crop Service: FAIL*
Olsen’s Mills Acquisition Co.: FAIL*
Abound Solar: FAIL
Sempra: FAIL
texan_conservative
Posted on April 7, 2012 at 9:06amI guess the companies now see what the government really wants, CONTROL. I don’t agree with government getting involved with business beyond taxes, but i equate this situation to letting a buddy borrow money, then telling him how he must spend all his money until he pays me back.
Report Post »Deepdiver58
Posted on April 7, 2012 at 8:14amTwo items jump out of this story:
1- Patricia Geoghegan is a “special master” appointed by Obama. To whom does she answer? And, where is the line item, in the approved budget, that covers her salary?
2- Government control over a private company. Fascism?
We, the United States, are being pulled down the path of destruction – by the Progressives and the Republicans.
Report Post »Junter
Posted on April 7, 2012 at 6:56amFreezed their pay by 10%?!?!?!?
Big freakin deal! How about 80% until they do their jobs correctly and quit charging US citizens for their blunders.
Report Post »texan_conservative
Posted on April 7, 2012 at 9:13amI don’t think the government should have been involved to begin with, but now that they are, i don’t think they should be able to tell these corp. how to spend their own money. Its a business, and they are large ones at that, so they obviously know a little about how to run their own businesses.
What if i took out a government backed mortgage loan? should i then be given a written out budget of what i should spend on what each month? this is why gov. needs to butt out of peoples lives, they over complicate things.
Report Post »mharry860
Posted on April 7, 2012 at 1:08amSo she works for the Government. They have over a 100% debt to income ratio. Shouldn’t she pay them whatever her salary is to work there.
Report Post »Doctor Nordo
Posted on April 7, 2012 at 4:47amSo by your logic the government should charge people to serve in the military as well?
I’m as critical of wasteful government spending as anyone, but your comment was borderline retarded.
Report Post »inblack
Posted on April 9, 2012 at 12:25am@DOCTOR
No, your logic is flawed.
The US govt is out of control with its self-righteous rhetoric. Govt interference has destroyed the housing market, stock market, the free market and the dollar.
Obama should be jailed for firing the CEO of a company and for violating bankruptcy law.
This fascist position that Obama has appointed is un-american and unconstitutional – she should be thrown out with Obama.
And yes she should forfeit all of her pay for taking a job that is clearly a farce.
Report Post »dirthead1986
Posted on April 7, 2012 at 12:23amFinally some good news!
Report Post »inblack
Posted on April 9, 2012 at 12:27am@DIRTHEAD
No, you should not be rejoicing at the emergence of your new overlords.
A govt czar that interferes in the free market should be shot, not tolerated.
Report Post »omgfolks
Posted on April 7, 2012 at 12:12amWhy only 10% why not something significant? 10% does not do anything to these guys or people like them. The bail out was a joke and the 10% is a joke.
Report Post »ForMyChildren
Posted on April 6, 2012 at 11:26pmWho is responsible for the current economic malaise? If you ask Bill Whittle, it‘s Obama’s pals like David Axelrod, Harry Reid and Tim Geithner, some of the many Merchants of Despair. These merchants are costing taxpayers trillions and creating deep national divides based on class and race. Will the despair continue for another four years? Find out.
http://www.youtube.com/watch?v=Y-FGgoReyNE
Report Post »lassiegirldawn
Posted on April 6, 2012 at 11:01pmThese B A S T A R D S cook their books and with commie-in-chief in their back pockets. Union money for campaign, they are in bed together.
Report Post »lukerw
Posted on April 6, 2012 at 11:50pmThey are the Government… and they do Nothing… unless their Socialist Think Tank perceives a way to add another Socialist Hook and Grab more Power!
Report Post »TomFerrari
Posted on April 6, 2012 at 10:01pmIs this like when obama froze budgets after bloating them? Freeze may also mean they cannot go down. Ask ALL the questions.
Report Post »Noonien_Soong
Posted on April 7, 2012 at 6:12amThis has happened before during the first round of bailouts if my memory is correct. This administration waits until the pot is ripe for the pickings. Remember AIG and the others.
Report Post »armedandsafe
Posted on April 6, 2012 at 9:33pmWhile I don’t feel much empathy for those executives, I still can‘t find in the Constitution where federal government employees have the authority to order a business to reduce their employees’ pay.
Report Post »SHOWMESTATEGUY
Posted on April 7, 2012 at 3:37amIt started in 2008 and hopefully it will end in 2012.
Report Post »Mess23
Posted on April 6, 2012 at 9:25pmWe should do that to the Senate… Maybe we could get a budget out of Reid the Red. Either that or fire him for dereliction of duty.
Report Post »deano24
Posted on April 6, 2012 at 11:56pmIf the U.S. government can do that to companies that took TARP money. Why can’t the American people dictate what they make in government positions. What gives them the right to give themselves pay raises?
Report Post »Laus Deo
Posted on April 6, 2012 at 9:21pmobammy WILL take credit for this in the presidential debates.
Report Post »Exrepublisheep
Posted on April 6, 2012 at 9:49pmWhy shouldn’t he?
Report Post »seeker9
Posted on April 6, 2012 at 9:18pmDid Chris Dodd and Barney Frank lose any pay?
Report Post »The Govt wanted more people in houses and encouraged NINJA (No income, No job, No assets) loans.
A market had to be made for the bad mortgages.
The rating agencies were persuaded to rate the junk.
The insurers had to take the ratings and insured the junk.
Wall Street packaged and sold the junk after Govt regulators sweetened the pot by allowing upwards of 40 to 1 leverage.
Wall Street got the blame. Govt got off scott free. Any one in govt lose money or pay?
Mikev5
Posted on April 6, 2012 at 9:07pmWhat ****** me off is we bailed them out but now GM is complaining… would you of rather lost your company you ingrate jerk Akerson.
Report Post »TRILO
Posted on April 6, 2012 at 9:07pmBoo…Hoo… I do not feel sorry for them. You get in bed with the devil and this is what you get.
Anyway, I thought the bailouts saved our country and made these companies profitable once again. So why do they still owe the American taxpayer millions???? These companies should have filed bankruptcy and restructured salaries, etc …. including the salaries for the CEO’s.
On another note, didn’t GM (UAW) just give their employees bonuses. This move is nothing more than a political move by the TOTUS.
Report Post »Alucard
Posted on April 9, 2012 at 3:41amWe’re talking billions not millions that these companies still owe.
Report Post »Snowleopard {gallery of cat folks}
Posted on April 6, 2012 at 9:04pmOnce again we see the Fed’s interfering with the free market; these companies should have been allowed to fail, then broken up and their assets sold off.
Report Post »right
Posted on April 6, 2012 at 8:48pm“General Motors CEO Daniel F. Akerson is expected to earn $9 million in stock and salary this year. Ally Financial’s CEO Michael A. Carpenter is set to earn $9.5 million in total compensation. AIG CEO Robert Benmosche will make $10.5 million.”
So sad too bad, a 10% reduction. Do you think you can live on that reduced income. Good job obama.
Report Post »lukerw
Posted on April 6, 2012 at 8:40pmAlly is the old GM Lending Agent… so all of these are in positions given by the Obama Admin… and are being Publically Spanked by the Obama Admin! What’s going on? Another grab for Power by the Gov;t over Business? — YOU BET!
Report Post »Sirfoldallot
Posted on April 6, 2012 at 8:36pmGo ahead end give it 2 them Timmy it’s monopoly money anyway ur buddy Ben is printing.
Report Post »Wdawg
Posted on April 6, 2012 at 8:33pmHow about No Pay till they pay back the taxpayer!
Report Post »godhatesacoward
Posted on April 6, 2012 at 8:55pmHow about a stern f u c k off!
Report Post »godhatesacoward
Posted on April 6, 2012 at 8:59pmI’m on your side!
Report Post »Mikev5
Posted on April 6, 2012 at 9:13pmOr slice them down to the bare minimum of $40K a year that’s what they deserve for trashing a company with thousands of employees these people lost a job because of you.
Report Post »Link8on
Posted on April 6, 2012 at 11:50pmWhy not freeze the pay of the top GM Union leadership ?
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