The New York Times is reporting that the Obama administration announced a $500,000 pay cap that prohibits bonuses for any companies that take additional taxpayer assistance.
Executives at companies that have already received money from the Treasury Department would not have to make any changes. But analysts and administration officials are bracing for a huge wave of new losses, largely because of the deepening recession, and many companies that have already received federal money may well be coming back.
Crucial details remained unclear on Tuesday night, including whether the restrictions would apply to all companies that receive money under the so-called Troubled Asset Relief Program, or TARP, or whether they would apply only to the “exceptional” companies that were being rescued from collapse.
The Times went on to list some executives from severely troubled companies — and their current salaries.
Kenneth D. Lewis, the chief executive of Bank of America, took home $5.75 million in salary and bonuses in 2007. His total compensation was around $20 million.
Vikram Pandit, who became chief executive of Citigroup in December of 2007, $3.1 million.
Richard Wagoner, of GM, took a $1.6 million salary. His total compensation was over $14 million.
Oh no, how will they afford custom asteroid mansions now! Perhaps there are some weekend nannerpuss-puppeting positions open to help fill in the gap.