This story is very hot today:
Barack Obama to order salary cuts at bailed-out firms
• President Obama's 'pay tsar' looks to curb boardroom excess
• Executive packages to fall by 50% on average
The US government is preparing to order bailed-out banks and car companies to slash the cash salaries of their top executives by an average of 90% in an effort to quell outrage over multimillion-dollar boardroom excess.
Kenneth Feinberg, the US treasury's so-called pay tsar charged with vetting remuneration, intends to tell seven struggling firms still dependant on taxpayer dollars that their 25 highest-paid executives must accept severe year-on-year cuts. The biggest drops will be in salaries. But after taking into account bonuses, stock options and other elements, total pay packages are set to fall by an average of about 50%.
Feinberg's power only extends to companies that are yet to repay government aid. The firms concerned include the struggling banks Citigroup and Bank of America, plus the insurer AIG.Read the rest of it here -
Also on the list are the Detroit car manufacturers General Motors and Chrysler, and the car companies' financing arms, Chrysler Financial and GMAC.
http://www.guardian.co.uk/business/2009/oct/22/obama-executive-pay-bail-outs
Read it and weep – for the people of Britain who demand such actions from our very own government.
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