Top Executives at Bailed-Out Firms Have Pay Cut
byApr 6th 2012 4:18PM
By DEREK KRAVITZ, AP Economics Writer
WASHINGTON (AP) -- 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.
The Treasury Department says nearly 70 executives at American International Group, Ally Financial and General Motors had their annual compensation reduced by 10%. 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.
Even with the compensation freeze, the chief executives are expected to be well paid this year. GM 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.
NEXT: America's 10 Highest Paid CEOs: Which Are Worth the Money?