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 ...
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.
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.
He has no business stickiing his ugly nose into private business.
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.
The buck doesn’t stop any more. It swerves.
Sometime during Reagan’s 2nd term, not sure of exact date.
Thanks, I will try to find more.
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.
Are CZARS decision makers or just advisors?
Aren't decision makers supposed to be approved by Congress?
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.
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?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.