WASHINGTON, Oct. 22 (UPI) -- Cuts of up to 90 percent of cash compensation are ahead for leading executives at seven companies that owe the U.S. government bailout repayments.
The payrolls of the bosses at American Insurance Group, Bank of America, Chrysler, Chrysler Financial, Citigroup, General Motors and GMAC Financial Services have been under scrutiny by Obama administration pay czar Kenneth Feinberg and Thursday he releases his decision.
The top 25 executives at those seven companies are expected to see their cash compensation slashed 90 percent -- although that can be made up on long-term stock payments. Still the annual pay of the executives will fall about 50 percent. Perks, such as private jet travel and country club fees, will also be targeted.
Still, as The New York Times reported, annual pay will still be in the millions of dollars for some executives at Bank of America, which lost $1 billion in the most recent quarter, and Citigroup, which did make $101 million in its most recent quarter despite $8 billion in credit losses and still owing the U.S. government $45 billion.
The companies involved are those that received the most government bail-out help in the last year.