22 Oct 2009
Obama to Cut the Pay of Numerous Top Bank Executives
Author: Chris Clark | Filed under: Life
The 7 companies that received the most bail-out money are going to be forced to cut the pay of their 25 highest paid employees by up to 90%. The 7 companies being targeted are Bank of America, AIG, Citigroup, General Motors, GMAC, Chrysler and Chrysler Financial. Word is the average cut will be about 50% across the board. The plan will also adjust how they are paid to help align the personal interests of the executives with the long-term health of their respective companies. The executives will also need permission to claim perks of over $25k a year. What say you, loyal readers?
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Tags: AIG, bail out, banks, Barack Obama, Chrysler, Citibank, Citigroup, GM, top executives
October 24th, 2009 at 7:54 pm
I agree with the idea of cutting the wages, but “by up to 90%”? That would be just a bit to much, eh?
October 25th, 2009 at 10:23 am
How much are these executives making, while their company is going under?
That said, I’m not a fan of just straight cutting the pay.
I think a better solution would be cutting the combined pay of all the top executives to some percentage of the total REVENUE of the company. That way, the focus shifts from cutting costs in order to increase profit to increasing revenue. More people get employed, the company can pay them more, the company is more easily able to expand, and the executives still can make a hefty amount of money.