Kenneth Feinberg, better known as the Obama administration’s pay czar, announced yesterday that he’d cut salaries on top executives at 5 companies that are still using bailout cash.
As pay czar, Feinberg is responsible for determining how much money is paid to the top 25 highest-paid employees at such companies. For 2010, he slashed the salaries of these big earners by an average of 15% from last year’s levels.
The companies where executives felt the pain of Feinberg’s axe are AIG, General Motors, GMAC, Chrysler and Chrysler Financial.
According to the Treasury Dept., these pay cuts haven’t driven away executives. They say that about 84% of the top earners under the pay czar’s jurisdiction are still working for the same companies.
“People at these five companies are not leaving the companies to go elsewhere,” explained Feinberg. “There is a striking number of holdovers.”