WDET News
- Feds Limit General Motors Pay
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Dec 11, 2009Automotive & BusinessThe Obama Administration is announcing new limits on wages for executives at certain firms that received a financial bailout from the government…including General Motors.
WDET’s Quinn Klinefelter has more…
The new guidelines cover mid-level executives at G-M and G-M-A-C…as well as A-I-G and Citigroup.
Those firms will have mid-level management pay limited to half-a-million dollars.
Chrysler and Chrysler Financial are NOT affected…because they do not pay any mid-level employees over 500-thousand dollars.
The Obama Administration granted several exemptions to companies who said they could lose key workers to competitors unless they could offer salaries beyond the new federal limit.
The Administration says the new rules mandate that all incentive pay come from a fixed pool…in an effort to tie executive compensation to overall company performance.
Administration officials say the rules will cover 2009 salaries…and set the standard for future bonus payments.