Pay Czar Cuts Bonuses, But Boosts Salaries

Feinberg beefs up base base to help firms retain talent
By Rob Quinn,  Newser Staff
Posted Oct 28, 2009 1:24 AM CDT
Pay Czar Cuts Bonuses, But Boosts Salaries
Special Master for Executive Compensation Kenneth Feinberg, also known as the Treasury Department's "pay czar," speaks at Georgetown Law School in Washington yesterday.   (AP Photo/Charles Dharapak)

(Newser) – Base pay will increase for the majority of top execs in the finance and auto firms supervised by federal pay czar Kenneth Feinberg. Salaries are being bumped up—by hundreds of thousands of dollars in some cases—as bonuses and other perks are slashed. Despite the salary hikes, all 136 execs at the seven firms overseen by Feinberg will end up making much less than last year.

Critics say the salary increases—granted in response to appeals from banks—contradict Feinberg's promise to restructure how top execs are paid. Other analysts say the hikes are a necessary move to help the firms retain talent. It "reflects his judgment that for competitive purposes he's got to keep these people," one Harvard expert told the Wall Street Journal. Requests for higher base salaries from some firms, including AIG, were rejected.
(Read more AIG stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X