Adjunct Professor Kenneth Feinberg '70, who was appointed special master for executive compensation under the Troubled Asset Relief Program by the Obama administration in June, has made his determinations on the salaries of the 25 highest-paid employees at each of the seven companies that received the most government bailout money, a total of $250 billion, but have yet to pay it back. Top executives at those entities—American International Group, Bank of America, Chrysler, Chrysler Financial, Citigroup, General Motors, and GMAC—will see their total compensation cut by half, and their cash earnings slashed by 90 percent. Limits on special perquisites will be implemented as well. Feinberg, whose decisions are binding, also sets compensation for 525 others at the firms.
Feinberg, who is not compensated by the government in his "pay czar" role, is founder and managing partner of Feinberg Rozen. He previously served as the special master of the September 11th Victim Compensation Fund of 2001.
Posted on October 22, 2009
