Treasury Limits Cash Compensation at Four Firms

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Published in The Wall Street Journal, December 11, 2009 by Jessica HolzerĀ 

Obama administration pay czar Kenneth Feinberg mandated new compensation rules Friday for about 450 employees at companies that received extraordinary government assistance during the financial crisis.
The rulings will apply to any 2009 compensation not already distributed to the 26th- to 100th-highest-paid employees at American International Group Inc., Citigroup Inc., General Motors Co. and GMAC. They also will serve as the starting point for 2010 pay guidelines at the companies under the paymaster’s jurisdiction.
“Do not underestimate the importance of the decisions I am rendering today,” Mr. Feinberg told reporters at a briefing. The new policies are “designed to send a message not only to these companies, but, we hope, to the greater corporate community,” he added.
Under the guidelines, cash salaries for 2009 have been mostly capped at $500,000 for the roughly 450 employees, though amounts above that threshold already distributed to employees can’t be recouped.

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