
I’m sorry. I just love that headline and believe I shall use it every chance I get.
But it kind of fits here. The U.S. Treasury is supposed to announce soon that companies that received big government bailouts will have to slash the compensation for their executives.
Here’s more, from the New York Times:
The companies are Citigroup, Bank of America, the American International Group, General Motors, Chrysler and the financing arms of the two automakers.
At the financial products division of A.I.G., the locus of problems that plagued the large insurer and forced its rescue with more than $180 billion in taxpayer assistance, no top executive will receive more than $200,000 in total compensation, a stunning decline from previous years in which the unit produced many wealthy executives and traders.
In contrast to previous years, an official said, executives in the financial products division will receive no other compensation, like stocks or stock options. And at all of the companies, any executive seeking more than $25,000 in special perks — like country club memberships, private planes, limousines or company issued cars — will have to apply to the government for permission. The administration will also warn A.I.G. that it must fulfill a commitment it made to significantly reduce the $198 million in bonuses promised to employees in the financial products division.
Well, it’s a start. And thanks, Slate, for the link.