A report at the link below says 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 (formerly General Motors Acceptance Corporation known as GMAC) and AIG.
The report from the special inspector general for the Troubled Assets Relief Program (TARP) said the government’s pay czar signed off on $6.2 million in raises for 18 employees at the three companies.
Shown above is Tim Geithner who is resigning as Treasury Secretaary by end of January.
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The chief executive of a division of AIG received a $1 million raise, while an executive at GM’s troubled European unit was given a $100,000 raise. In one instance, an employee of Ally’s Residential Capital was awarded a $200,000 pay increase weeks before the subsidiary filed for bankruptcy.
Christy Romero, special inspector general for TARP (Troubled Assets Relief Program) said, “We expect Treasury to look out for taxpayers who funded the bailout of these companies by holding the line on excessive pay.
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.”