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Pay Czar Feinberg, Not Obama, Behind Decision to Slash Executive Pay [All Hail Caesar!]
FoxNews ^ | October 22nd 2009

Posted on 10/22/2009 12:01:26 PM PDT by Steelfish

Pay Czar Feinberg, Not Obama, Behind Decision to Slash Executive Pay

White House pay czar Kenneth Feinberg did not seek President Obama's approval to order steep pay cuts from bailed-out executives.

Thursday, October 22, 2009

White House pay czar Kenneth Feinberg was the driving force behind the move to order steep pay cuts from bailed-out executives, and did not even seek the president's approval before making his decision.

The Treasury Department is expected to formally announce in the next few days a plan to slash annual salaries by about 90 percent from last year for the 25 highest-paid executives at the seven companies that received the most from the Wall Street bailout. Total compensation for the top executives at the firms would decline, on average, by about 50 percent.

The sweeping decision, though, came from Feinberg and not from President Obama.

One official told Fox News that Feinberg from the start had the independent authority to work with companies and make such a call. Obama was never required to sign off before final decisions were made.

On Thursday, the chairwoman of the panel that oversees the $700 billion federal bailout fund said the Obama administration is serious about the new plan. In an interview, Elizabeth Warren said reports of pending slashes in executive salaries are "real."

"It's real in the sense that it says, 'Guys, you have to understand that you can't party on like it's 2007. If you're going to take taxpayer dollars, then the game has to change. In that sense it's real,'" she said on CBS' "The Early Show."

The seven affected companies are: Bank of America, American International Group, Citigroup, General Motors, GMAC, Chrysler and Chrysler Financial.

(Excerpt) Read more at foxnews.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: aig; bailout; bankofamerica; chrysler; chryslerfinancial; citigroup; czar; feinberg; feinburg; generalmotors; gmac; stimulus

1 posted on 10/22/2009 12:01:26 PM PDT by Steelfish
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To: Steelfish

The Obama Polituro is on the prowl.


2 posted on 10/22/2009 12:05:49 PM PDT by Slapshot68
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To: Steelfish

Plus,they can’t use their remaining 10% to go to Vegas-
Hail Brackus!


3 posted on 10/22/2009 12:06:11 PM PDT by Dr. Ursus
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To: Steelfish

http://www.freerepublic.com/focus/f-news/2368589/posts


4 posted on 10/22/2009 12:06:55 PM PDT by Doogle (USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: Steelfish
From Atlas Shrugged, Directive 10-289:
  1. All workers are bound to their jobs and can neither leave nor be fired under penalty of one year in prison. The Unification Board, reporting to the Bureau of Economic Planning and National Resources, possesses judicial authority. All citizens upon turning 21 must register with the Unification Board which will assign them jobs in the best interests of the nation.
  2. All businesses must remain in operation and cannot close under penalty of nationalization and confiscation of property.
  3. All patents and copyrights are to be turned over to the government by the use of “voluntary” Gift Certificates. The Unification Board will license those processes to all applicants to eliminate monopolies. All brand names and private trademarks are abolished.
  4. No new inventions shall be produced or invented. The Patent Office is suspended.
  5. All business establishments will produce the same amount every year as they did in the baseline known as the Yardstick Year, to be enforced by the Unification Board.
  6. All citizens must purchase the same amount of goods every year as they did in the Yardstick Year, to be enforced by the Unification Board.
  7. All wages and prices are frozen.
  8. All cases arising from this directive are to be decided by the Unification Board.

5 posted on 10/22/2009 12:08:56 PM PDT by Publius (Conservatives aren't always right. We're just right most of the time.)
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To: Steelfish

Does OBOZO ever take responsibility for anything???

Answer: Only when he thinks it may help him Politically:-(


6 posted on 10/22/2009 12:11:09 PM PDT by True Republican Patriot (May GOD Continue to BLESS Our Great President George W. Bush!!)
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To: Steelfish

B.S. Obama is merely hiding behind Feinberg.


7 posted on 10/22/2009 12:11:16 PM PDT by clintonh8r (My country. Not my government.)
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To: Publius

obama directive 10-289


8 posted on 10/22/2009 12:16:33 PM PDT by Texas resident ( Doing my part to piss off the heathen left.)
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To: Steelfish

I didn’t realize that part of the czars’ job description is to shift blame away from the ‘bama when it’s not practical to blame Bush. I guess SNL was right-not only has he not done squat, but it will be his continuing policy not to do squat.


9 posted on 10/22/2009 12:16:35 PM PDT by Spok
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To: Steelfish
Truman (the last half-decent Democrat): "The Buck Stops Here!

Obama: "Take their bucks and take the blame too!"

10 posted on 10/22/2009 12:18:54 PM PDT by bvw
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To: Steelfish

How close a correlation do you think there will be between the amount various corporations and their executives donated to Obama and the amount of pay they get keep?


11 posted on 10/22/2009 12:19:06 PM PDT by Libertarianize the GOP (Make all taxes truly voluntary)
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To: Steelfish

Yes, Mildred, we do have a Dictatorship and will until we decide not to have one any more.


12 posted on 10/22/2009 12:22:35 PM PDT by Steamburg ( Your wallet speaks the only language most politicians understand.)
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To: Steelfish

Can’t get away with the shell game.
Obama appointed the dude.
The “Czar” only has authorities given by Obama.
No oversight or approval is needed except Obama’s.
Its Obama solo and the tune has nothing but sour notes.


13 posted on 10/22/2009 12:29:03 PM PDT by rod1
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To: Steelfish
One question:

Will THIS? meet staNDIng requirments for BO Eligibility suits ??

...Let's make it a viral kind of question.....

14 posted on 10/22/2009 12:29:10 PM PDT by urtax$@work (The best kind of memorial is a Burning Memorial.........)
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To: Publius

don’t give them any ideas!


15 posted on 10/22/2009 12:31:58 PM PDT by NonValueAdded ("The Democrats scare me, the GOP infuriates me.")
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To: Steelfish

Back in the sixties the government forced the Dupont family to divest themselves of a controlling interest in GM. The result was supposed to be management closer aligned to the interest of shareholders. The actual result was a management that focused more on the short term. A wealthy family like the Dupont’s looked at how to maintain and build longterm family wealth since they had little need for current income.

This limitation of pay will likely encourage even shorter term thinking. Any form of delayed compensation could be subject to government confiscation just before it is paid out, while it would be almost impossible for the government to recoup money already distributed. Grab the money quick before the government can interfere.


16 posted on 10/22/2009 12:32:03 PM PDT by Libertarianize the GOP (Make all taxes truly voluntary)
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To: Steelfish

The spin is plausible deniability but at some point the chief executive must take responsibility for his direct reports.


17 posted on 10/22/2009 12:37:40 PM PDT by 556x45
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To: clintonh8r
B.S. Obama is merely hiding behind Feinberg.

All statements and decisions must be approved in advance by Der Fuhr... President Obama. To suggest otherwise would be unpatriotic.
/sarc

18 posted on 10/22/2009 12:37:44 PM PDT by GulchBound (Who owns you?)
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To: 556x45

Plausible Deniability my butt.

Obama is back of the whole thing.


19 posted on 10/22/2009 12:39:31 PM PDT by Venturer
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To: Steelfish

This is why Czars are unconstitutional. Anybody with that kind of free-standing authority needs to come before a congressional body for advise and consent or stand for election.


20 posted on 10/22/2009 12:39:33 PM PDT by Til I am the last man standing (It's the internet Senators; We can see what you are doing!)
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To: Steelfish
Great way to make friends and influence people.

"These people" are so focused on their goals that they are not seeing the Patriotic Resistance that says "You Are Not The Boss Of Me."

What's going to happen in people's minds is the thought "If the Czar can tell "So'n'So" how much he can earn, then the Czar can tell ME how much I can earn. And that's not going to happen; this is STILL the USofA!"

The continuing saga of the unraveling of Zer0bama.
21 posted on 10/22/2009 12:41:12 PM PDT by HighlyOpinionated (Abortion kills the very people for whom Social Justice is needed.)
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To: Venturer

Of course it ridiculous but thats how the MSM/press secretary are playing it. You can;t play that game forever and be consider credible.


22 posted on 10/22/2009 12:53:50 PM PDT by 556x45
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To: Libertarianize the GOP

That’s the thanks DuPont got for saving GM from bankruptcy, right after WW1. Later, the government admitted they made a mistake and had no authority to force the divestment.


23 posted on 10/22/2009 1:02:44 PM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: Steelfish

He has no business stickiing his ugly nose into private business.


24 posted on 10/22/2009 1:05:44 PM PDT by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: NTHockey

It took fifteen years to finally get the Federal courts approval for forcing the Duponts out of GM, when did this admittance on the part of the government take place.


25 posted on 10/22/2009 1:11:12 PM PDT by Libertarianize the GOP (Make all taxes truly voluntary)
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To: Steelfish

The buck doesn’t stop any more. It swerves.


26 posted on 10/22/2009 1:36:52 PM PDT by Semper911 (When you want to rob Peter to pay Paul, you'll always have the support of Paul.)
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To: Libertarianize the GOP

Sometime during Reagan’s 2nd term, not sure of exact date.


27 posted on 10/22/2009 2:05:12 PM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: NTHockey

Thanks, I will try to find more.


28 posted on 10/22/2009 2:08:22 PM PDT by Libertarianize the GOP (Make all taxes truly voluntary)
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To: Steelfish
The pay restrictions for all seven companies will require any executive seeking more than $25,000 in special benefits -- things such as country club memberships, private planes and company cars -- to get permission for those perks from the government.

I weep. I weep.

Joking aside, I'm curious how the slashing will be achieved. I'm guessing that the executives will be given "the option" to void their old contracts and sign new ones. If they choose not to opt for this, then what?

Also, speaking as someone who's husband lost his job when his company went bankrupt and was liquidated, these executives are still in a better position than if their companies went belly up and a bankruptcy judge got involved. Those judges shed no tears.

29 posted on 10/22/2009 2:10:12 PM PDT by kittykat77
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To: kittykat77
The pay restrictions for all seven companies will require any executive seeking more than $25,000 in special benefits -- things such as country club memberships, private planes and company cars -- to get permission for those perks from the government.

Are CZARS decision makers or just advisors?

Aren't decision makers supposed to be approved by Congress?

30 posted on 10/22/2009 2:20:07 PM PDT by mckenzie7 (I am a European American! Silly me. I never realized that before! Thanks, oh great unifier!)
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To: mckenzie7
Some so-called czars are advisors and some so-called czars are decisionmakers.

Last June, Feinberg was appointed by the US Treasury Department as as Special Master on Compensation, specifically focusing on those companies that accepted TARP and bailout money. This is not an unprecedent position; there have been other Special Masters on Compensation in the past (see, for example, the 9/11 families).

Congress was advised by Treas Sec Geithner during hearings on Capital Hill about Feinberg's appointment and duties and his power to enact decisions.

None of this is unprecedented. Go back and reread the coverage of the price and wage freezes during the Nixon and Ford administrations. Lots of so-called czars were busy working back then, too.

31 posted on 10/22/2009 2:39:36 PM PDT by kittykat77
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To: Steelfish
Campaign Contributions

While working with the Feinberg Group, Feinberg donated over $150,000, nearly all of which has gone to Democratic candidates and political action committees. In 2007, Feinberg donated $2,300 to 2008 presidential candidate Rudolph Giuliani (R). The other Republican cause to which Feinberg donated was former Sen. Chuck Hagel’s (Neb.) leadership PAC called Sandhills. From 1999 to 2007, Feinberg donated $30,000 to Sandhills. In 2007, Feinberg gave Obama $6,900.(14)

Where did old Ken get all that dough?

32 posted on 10/23/2009 4:30:25 AM PDT by Thebaddog (AYBABTU)
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