30 October, 2009Following the recent U.S. administration decision, salaries of the top executives of seven bailed-out big companies, including General Motors and Chrysler, will be considerably cut.
USA: General Motors and Chrysler top executives will have to review their remuneration schemes and see their salaries decreased by 90 per cent on average.
The U.S. Government, following its decision on bailing out seven flagships of the American economy, decided to impose slashes in the salaries of the companies' top executives. The move, according to the plan developed by Kenneth Feinberg, U.S. Treasury Department attorney charged to oversee spending in the bailed-out companies, will touch upon around 170 executives in seven companies and banks still receiving American tax-payer money.
Feinberg suggested to cut top executive base salaries by 90 per cent and to leave them with only half of other forms of compensation.
The decision will also concern Chrysler Financial and GMAC Financial services, financial arms of both corporations.