Treasury Continues Approving Excessive Pay for Top Executives at Bailed-Out Companies
Treasury Continues Approving Excessive Pay for Top Executives at Bailed-Out Companies, Office of the Special Inspector General for the Troubled Asset Relief Program, January 28, 2013.
“SIGTARP found that once again, in 2012, Treasury failed to rein in excessive pay. In 2012, OSM approved pay packages of $3 million or more for 54% of the 69 Top 25 employees at American International Group, Inc. (AIG), General Motors Corporation (GM), and Ally Financial Inc. (Ally, formerly General Motors Acceptance Corporation, Inc.) 23% of these top executives (16 of 69) received Treasury-approved pay packages of $5 million or more, and 30% (21 of 69) received pay ranging from $3 million to $4.9 million. Treasury seemingly set a floor, awarding 2012 total pay of at least $1 million for all but one person. Even though OSM set guidelines aimed at curbing excessive pay, SIGTARP previously warned that Treasury lacked robust criteria, policies, and procedures to ensure those guidelines are met. Treasury made no meaningful reform to its processes. Absent robust criteria, policies, and procedures to ensure its guidelines were met, OSMs decisions were largely driven by the pay proposals of the same companies that historically, and again in 2012, proposed excessive pay. With the companies exercising significant leverage, the Acting Special Master rolled back OSMs application of guidelines aimed at curbing excessive pay.”
Related postings on financial system