Obama’s “pay czar” Kenneth Feinberg has now targeted the salaries of midlevel employees at bailed-out companies, with hopes of having his salary caps adopted industry-wide.
The Obama administration’s pay czar announced on Friday new limits on the pay of middle-level executives at four firms that received government bailout assistance, capping base cash salaries for those employees at $500,000.
The new limits will cut pay for the 26th to 100th highest-paid employees at the four firms under his authority and mandate the form of the compensation and limit perks.
Kenneth Feinberg said he hopes the new pay guidelines will set the standard for U.S. compensation practices. The thrust of the guidelines is to tie executive compensation more closely to the performance of their firms.
The firms covered by the limits are American International Group (AIG 27.57, -1.36, -4.71%) , Citigroup (C 3.92, +0.05, +1.29%) , General Motors and GMAC (GMA 18.75, -0.10, -0.53%) . Chrysler and Chrysler Financial are not covered because they are not paying any employees at this level over $500,000.
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Hat tip: Michelle Malkin