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Related: About this forumTreasury approved big pay raises at bailed-out AIG, Ally and GM, report says
Source: Washington Post
Treasury approved big pay raises at bailed-out AIG, Ally and GM, report says
By Danielle Douglas, Updated: Monday, January 28, 5:07 PM
The Treasury Department ignored its own guidelines on executive pay at firms that received taxpayer bailouts and last year approved compensation packages of more than $3 million for the senior ranks at General Motors, Ally Financial and American International Group, according to a watchdog report released Monday.
The report from the special inspector general for the Troubled Assets Relief Program said the governments pay czar signed off on $6.2 million in raises for 18 employees at the three companies. The chief executive of a division of AIG received a $1 million raise, while an executive at GMs troubled European unit was given a $100,000 raise. In one instance, an employee of Allys Residential Capital was awarded a $200,000 pay increase weeks before the subsidiary filed for bankruptcy.
We expect Treasury to look out for taxpayers who funded the bailout of these companies by holding the line on excessive pay, said Christy Romero, special inspector general for TARP. Treasury cannot look out for taxpayers interests if it continues to rely to a great extent on the pay proposed by companies that have historically pushed back on pay limits.
The inspector generals report accuses Patricia Geoghegan, Treasurys acting special master for compensation, of sidestepping protocol that kept pay packages at the midpoint of comparable firms. Geoghegan, however, said the audit is riddled with inaccuracies and mischaracterizes the data provided to the inspector general.
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By Danielle Douglas, Updated: Monday, January 28, 5:07 PM
The Treasury Department ignored its own guidelines on executive pay at firms that received taxpayer bailouts and last year approved compensation packages of more than $3 million for the senior ranks at General Motors, Ally Financial and American International Group, according to a watchdog report released Monday.
The report from the special inspector general for the Troubled Assets Relief Program said the governments pay czar signed off on $6.2 million in raises for 18 employees at the three companies. The chief executive of a division of AIG received a $1 million raise, while an executive at GMs troubled European unit was given a $100,000 raise. In one instance, an employee of Allys Residential Capital was awarded a $200,000 pay increase weeks before the subsidiary filed for bankruptcy.
We expect Treasury to look out for taxpayers who funded the bailout of these companies by holding the line on excessive pay, said Christy Romero, special inspector general for TARP. Treasury cannot look out for taxpayers interests if it continues to rely to a great extent on the pay proposed by companies that have historically pushed back on pay limits.
The inspector generals report accuses Patricia Geoghegan, Treasurys acting special master for compensation, of sidestepping protocol that kept pay packages at the midpoint of comparable firms. Geoghegan, however, said the audit is riddled with inaccuracies and mischaracterizes the data provided to the inspector general.
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Read more: http://www.washingtonpost.com/business/economy/treasury-approved-big-pay-raises-at-bailed-out-aig-ally-and-gm-report-says/2013/01/28/1e0fe84c-695f-11e2-ada3-d86a4806d5ee_story.html
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Treasury approved big pay raises at bailed-out AIG, Ally and GM, report says (Original Post)
Eugene
Jan 2013
OP
aquart
(69,014 posts)1. I have consistently wished to hang Geithner.
After a fair trial, of course. May I see Ms Geoghegan's offshore accounts?
xchrom
(108,903 posts)2. Du rec. Nt