Feds Cut Auto Exec Pay

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It seems the government wasn’t kidding when it said it would keep a close eye on executive salaries after numerous bailouts. Today, the Treasury Department’s pay czar cut automotive executive salaries at five firms by 15% overall, and by 25% for the top 25 executives at each firm.

The czar, Kenneth Feinberg, noted that even with the cuts the companies retained 84% of their executives. Being able to retain top talent has been a major complaint of bailed-out companies wary of government control of salaries.

At GM, three execs will actually get pay raises, five will get no raise, and 14 will get pay cuts.

Don’t cry for all the executives, though, especially one of the newest, GM CEO Ed Whitacre (above). He’ll be getting a salary of $1.7 million as part of a total compensation package of $9 million.

Treasury Slashes Exec Pay at Auto Firms (Detroit News)