Feinberg setting new limits for exec pay
Kenneth Feinberg, special master for executive compensation under the Troubled Asset Relief Program
TEXT OF INTERVIEW
Steve Chiotakis: Corporate pay is the topic the nation's so-called Pay Czar, Kenneth Feinberg, will be talking about today. He's set to announce new rules for six companies still under government restrictions because of the bailout they received. Let's bring in Ashley Milne-Tyte live from the Marketplace New York City bureau with the latest. Good morning Ashley.
Ashley Milne-Tyte: Good morning!
Chiotakis: So what are we going to hear today from Mr. Feinberg?
Milne-Tyte: Well he's expected to announce that there'll be new restrictions on pay for some of the highest-paid employees at these six companies. So we're talking about Citigroup, AIG, GM, Chrylser, Chrysler Financial and GMAC. And he's already slashed pay for the top 25 executivess at those firms that, you know, still have a lot of TARP money. But today's announcement is expected to affect the pay of the next 75 highest-paid people at those firms.
Chiotakis: And what do you think the reaction's going to be?
Milne-Tyte: Not very enthusiastic, probably. I spoke to Eric Moskowitz of Options Group earlier, that's a Wall Street compensation consulting firm:
Eric Moskowitz: They're not going to like it, but I think the bottom line is that everyone knows, from Wall Street to Main Street, that the top leading United States banks may not be in business today if it wasn't for the federal support system. And that's a fact.
Milne-Tyte: Well that may be the case, but that doesn't mean that nobody's complaining. I mean AIG's CEO has already been openly at loggerheads with Ken Feinberg over the pay restrictions. I mean he's basically said, you know, "If you want us to put this firm back together, AIG staff need to be well-paid, or they're gonna quit."
Chiotakis: All right, Ashley Milne-Tyte from New York. Ashley, thanks.
Milne-Tyte: You're welcome.