Government will cut the annual salaries of their 25 best-paid executives in firms getting bailouts by an average of about 90 percent
Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in the government’s financial rescue, the Obama administration will order the companies that received the most aid to deeply slash the compensation to their highest paid executives, an official involved in the decision said on Wednesday.
Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the annual salaries of their 25 best-paid executives by an average of about 90 percent from last year. Their total compensation — including bonuses and retirement contributions — will drop, on average, by about 50 percent. . . .
Here is a story that the seven firms that have gotten the most bailout money will face these largest cuts. How the number seven was arrived at is not obvious nor is there a statement about how large the cuts will be at other firms.
The seven companies are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial. . . .
The DJIA went from being up by about 40 to falling down 92.
Stocks sold off late Wednesday after Wall Street learned that Washington would restrict executive pay at companies receiving bailout funds . . . .