Pay Czar Concerned Top Execs Might Leave

New Rules at Bailed-Out Businesses Could Spark Executive Exodus, Czar Says

(AP)  The Obama administration's pay czar said Thursday that he is "very concerned" about scaring away top talent at seven firms that took the biggest bailouts.

"The determinations I render I design first and foremost to make sure those companies thrive and that the taxpayers get their money back," said Kenneth Feinberg, the Treasury Department's special master for executive compensation.

Feinberg spoke following reports that American International Group Inc. CEO Robert Benmosche was threatening to leave after chafing under Feinberg's oversight of pay at the firm. Benmosche said Wednesday he was frustrated but planned to stay on.

Feinberg didn't learn about Benmosche's purported threats to leave the company until reading those news reports, he told reporters after his speech.

But he said Benmosche had told him that Feinberg's pay rules for the 25 highest-earning employees would cause key personnel to leave, making it difficult for the company to return its taxpayer bailouts.

New York-based AIG received an aid package worth up to $180 billion from the government in exchange for a roughly 80 percent stake in the company. That bailout package also includes restrictions on compensation for the insurer's 100 highest-paid employees.

Most analysts are skeptical AIG will be able to pay back its billions, many of which went to banks including Goldman Sachs Group Inc. and Deutsche Bank to wind down complex financial deals.

AIG "may not be able to pay the whole thing back for a period of time," Feinberg said, "but if we see signs there is repayment of (the bailouts), installments or whatever, I think we're doing our job."

Feinberg's office is not directly responsible for deciding whether AIG is capable of repaying the money, or how much it can repay.

Besides AIG, Feinberg oversees pay at Bank of America Corp., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

Speaking at the Bloomberg Washington Summit, Feinberg said no company had formally appealed his decisions about pay for their top 25 earners. He said only Bank of America and AIG had raised strong informal objections.

By contrast, the submissions from automakers showed that their pay packages are "much less than competitive pay at Citigroup or Bank of America," Feinberg said.

"The overall competitive pay we laid out will allow the auto industry to move forward," he said.

[ts1mcen]

We will continue to be in terrible economic distress until we get rid of the BS that the "wall street" people try to push on the public and politicians that they are soooo important. Fire all of 'em and put in some people who can "live" on a million a year in 'poverty'!!

[justdatrooth]

LMAO....No shyte Sherlock!!!!

[ramos1129]

Feinberg has to understand that for every executive that leaves his/her job, there are more than 20 accomplished executives unemployed that would love to have that job.

[fleabag75]

HEY!!!! We gotta protect the "good ol' boys club". There has been a lot of palm-greasing over the years to just let these guys fall on their swords. You just don't make backroom deals and walk away from them! These guys have an obligation to look out for each other. A lot of money has gone into pockets,,,,,,, Oppsssss I mean to say a lot of water has gone under the bridge. The boys need protection!!!!

[redcj]

Are you kidding me??????? They failed and bankrupted the companies and their bonus and base pay + extras should remain intact if not higher??????? It is time to give them a reality check and cut the free ride. Just like that freak, Carly Fiorina, who wants to run for California Governor!!!! Lady you failed one (1) company, what makes you think you can run a big and complicated State like California? HELLLLOOOOOOOO .....Give them all salary cut like the rest of us "middle class" people. It is about time!

[rematenaj]

Those types of jobs are not plentiful - let them leave and see if they can find a new job after running their companies into the ground! I don't think these types of people are in high demand...

[Mustache_Outlaw]

I agree, let him leave. I guarantee you that there are 100,000 people that want that job, would do a better job , and would do it for half the pay + bonuses.. Again, how can you expect a company to pay out Billions in bonuses a year and still expect them to be profitable ? The math has never and still doesn't add up.

[rightbehind]

Let them go. People have had enough of derivatives, hedge funds, credit default swaps, speculators, and speculation. Until they start throwing those most desired former enron employees that morgan stanley and goldman sachs hired in jail. The same ones that caused rolling blackouts in California and gas to rise to 4 dollars a gallon. wallstreet will never have credibility.

[midlclass]

funny when our company said it needed a 1 year contract extention with no pay raise and a increase in health insurance premiums. the employee's bit the bullet and voted the contract extention in. these cry babys want more money for letting there companies fail. good corperate logic. i guess you can't get a good executive job unless your resume has at least 1 failed company on it's list.

[pandamonium6]

With over three hundred million people in this country I find it extremely hard to believe that these few individuals are the ONLY ones able to run these companies. If the long term goal is to keep stealing from the American people, by all means keep them. If the long term goal is to get the ecomony back on track for the other 299 million of us, I say let them go!

[lami987]

Those few individuals are the only ones who can almost run their companies into bankruptcy. Let them leave it'll be a giant blessing for their comapnies and tax payers. If the companies really need them they can always outsource those jobs at a fraction of their pay and get a lot better results. Those talented crooks outsourced American jobs and now its time for them to feel what they have created.