U.S. Pay Czar to Rework Contracts Deemed High

[Heidi]

Source: Wall Street Journal

WASHINGTON -- The U.S. pay czar, now preparing to vet the compensation at businesses receiving major federal aid, will push to renegotiate contracts that he views as excessive or seek other ways to reduce overall outlays, said people familiar with the matter.

The role of the government in setting pay is reaching a pivotal moment. Seven banks and industrial companies that received significant bailouts must submit proposals for their compensation packages by Aug. 13.: Citigroup Inc., Bank of America Corp., American International Group Inc., General Motors Co., Chrysler Corp., Chrysler Financial and GMAC Financial Services Inc.

Treasury Department official Kenneth Feinberg, who has authority to oversee pay for the 100 highest-paid employees at those companies, has been meeting regularly with the seven firms to help them fix a level and structure of compensation that the government deems proper, say industry and U.S. officials.

<snip>

None of the firms have yet submitted their proposed pay packages. GMAC has proposed to Mr. Feinberg that it be able to pay its top people a mix of 20% cash and 80% stock, according to a person familiar with the situation.

Read more: http://online.wsj.com/article/SB124865384313282569.html

[rfranklin]

1. Merely a PR effort...

Nothing will come of this.

[No Elephants]

2. Right. Legislation giving the bailout and stimulus was the wrong place to address issues like this,

so we hired a pay czar to try to lock the barn door after the horses were already in another state.

:sarcasm:

[pattmarty]

3. The original bailout (under Bush) which was opposed by.............

...........both Liberals AND Conservatives, shows just how powerful the banking/insurance industries are in this country, but also how "we the people" are powerless. I was all shits and smiles when Obama ran and was elected. I am now realizing that nothing short of a minor revolution will CHANGE anything in this country. It is depressing watching the insurance "reform" unfolding into a toothless piece of legislation that will "change" nothing. We are indeed a corporate/fascist state, better get used to it.

[fasttense]

4. We are actually in a worse position than a fascist state.

For example in Mussolini's Italy, the corporations did the bidding of the government. The corporations did not run the show, they merely were just another pawn of a fascist dictator. As long as CEOs did what they were told, they could make huge profits off of concentration camp labor and an intimidated labor force.

But in the good old US of A, the corporations run the government. So it's kind of like a backward fascism. Figures that the Republicons couldn't even set up a fascist dictatorship correctly.

[pattmarty]

5. Yes, good take on the new improved "American" version of fascism.