October 21st, 2009
07:42 PM ET

White House to push for big pay cuts

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/10/21/ken_feinberg_090610.jpg caption="Obama's Pay Czar Kenneth Feinberg is in charge of reviewing pay plans at biggest bailout firms." width=292 height=320]

David Ellis

The Obama administration will soon order the nation's biggest bailed-out companies to drastically cut pay packages for their top executives, a senior administration official confirmed to CNN Wednesday.

Kenneth Feinberg, who was named the White House's pay czar in June, will demand that the seven largest bailout recipients lower the total compensation for their top 25 highest paid employees by 50%, on average, the official told CNN.

For the past two months, Feinberg has been reviewing pay plans at Citigroup (C, Fortune 500), AIG (AIG, Fortune 500), Bank of America (BAC, Fortune 500), General Motors, Chrysler, GMAC and Chrysler Financial in an effort to put these firms in a position to pay back bailout money as soon as possible.

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Filed under: Bailout Turmoil • Wall St.
soundoff (4 Responses)
  1. James Hines

    I agree with the Obama Administration's position in reducing or eliminating the excessive executive payments. I feel given their bailouts and the current economic conditions, it is the right move.

    October 21, 2009 at 11:21 pm |
  2. alex lyrics

    Thats right hit theem where it hurts in the pocket, because thats where they hit us.

    October 21, 2009 at 10:20 pm |
  3. Cecil

    Our forefathers must be turning over in their graves to know that the U.S. government is determining the salaries of privately owned companies.

    October 21, 2009 at 9:57 pm |
  4. Annie Kate

    Its about time something was done about those obscenely high paychecks. Hopefully, this will enable the companies to pay back their bailout money and to stay in business. Hopefully, more sane pay scales will continue.

    October 21, 2009 at 9:24 pm |