The United States Treasury Department, under the direction of pay czar Kenneth Feinberg (pictured) has cut the total cash compensation for the top 25 executives at both General Motors and Chrysler, among other companies who received bailout assistance under the $700 billion Troubled Asset Relief Program (TARP). On average, the overall compensation for 2010 is down 15 percent versus 2009.
GM Chairman and CEO, Ed Whitacre, has been approved for $9 million in total compensation, including $1.7 million in cash. Chief financial officer, Chris Liddell, will be getting $6.27 million, $900,000 of which is in cash. Of the remaining executives, only a small handful have been approved to receive $500,000 or more, even though GM was hoping to pay out similar sums of money to 16 of its top 25 executives.
Chrysler's top executives, on the other hand, will not be seeing any reductions in cash salaries, but none of the automaker's top 25 will be receiving more than $500,000 in cash. However, keep in mind, that Chrysler's top execs had their pay cut by 18 percent in 2009.
In addition to GM and Chrysler, Feinberg has issued pay cuts for lending companies GMAC and Chrysler Financial, as well as AIG, Inc. Next month, he plans to issue a compensation structure for the next highest-paid 75 executives at all of these companies, as well.
[Source: The Detroit News | Image: Win McNamee/Getty]