Wednesday, October 21, 2009
The federal "pay czar," Kenneth Feinberg, will order the seven companies receiving the most federal bailout money to reduce the cash compensation to their 25 highest-paid employees by about 90%. Many employees will instead receive restricted stock. Total compensation to those employees will be reduced by about 50%. Feinberg will also require a number of corporate governance changes, such as splitting the CEO and Board Chairman positions and eliminating staggered boards. NYTimes, U.S. to Order Steep Pay Cuts at Firms That Got Most Aid; WSJ, Pay Czar to Slash Compensation at Seven Firms.