Filed Under:Markets, Regulation/Legislation

AIG Among 3 TARP Companies to See Top Exec Compensation Freeze

Sept. 17, 2008 file photo of the AIG logo shown in New York (AP Photo/Mark Lennihan, file)
Sept. 17, 2008 file photo of the AIG logo shown in New York (AP Photo/Mark Lennihan, file)

The Treasury announced on April 6 that the chief executives of AIG, Ally Financial and General Motors would have their compensation packages frozen for a second year in a row, essentially keeping their compensation at 2011 levels.

The compensation freeze arose out of the 2007-2009 financial crisis when the government injected taxpayer-financed funds into the companies as part of the Troubled Asset Relief Program (TARP).

AIG’s top executive will receive total direct compensation (a mix of cash, stock and future stock option) of $ 10.5 million while Ally Financial’s leader will receive $9.5 million and GM’s chief executive will receive $ 9 million.

The Treasury also announced that total direct compensation during 2012 for 69 other senior executives at the three companies was being cut by 10 percent from 2011 levels. The group of 69 is comprised of the five senior executive officers and the next 20 most highly compensated employees (based on 2011 compensation) at the three companies without six departures that took place since Jan. 1, 2012.

The three companies were part of a larger group of seven companies that were deemed by the Treasury to have received “exceptional” assistance; in response to populist anger at high-pay and huge bonuses at bailed-out firms, the Obama administration created a “special master’s office” to oversee pay practices at exceptional firms. Four of the original seven—Bank ofAmerica, Citigroup, Chrysler Financial and Chrysler—have repaid their TARP money and left the program.

This story originally appeared on LifeHealthPro, a sister site of PC360.

Top Story

Ferguson burning: 9 scenes of property damage in the wake of the riots

A grand jury in Ferguson, Missouri on Monday declined to indict a local police officer in the August 2014 shooting death of 18-year-old Michael Brown, setting off a night of violent riots in the suburban St. Louis community. Here's the aftermath.

CE & Training

One Low Price for Complete Access to All Courses

Choose from National Underwriter's complete library of courses available in your state to get the credits you need quickly and affordably. Take advantage of the Open Pass Package for only $49. Click here to start your training today!

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone
         

Advertisement. Closing in 15 seconds.