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Pay czar trims salaries at top of GM exec ranks

Reuters -- The U.S. pay czar will slash the number of top General Motors Co executives who will receive base salaries of more than $500,000 this year.

Pay czar Kenneth Feinberg said he plans to release the 2010 compensation decisions next week on the five large U.S. companies that are under pay restrictions as part of their government bailouts.

The rules restrict the top 25 executives from receiving more than $500,000 in base cash salary unless a company can prove a good reason for the higher pay.

GM is more than 60 percent-owned by the U.S. Treasury after a government-funded bankruptcy and reorganization in 2009. The U.S. government also holds a small stake in Chrysler, which is under management control of Italy's Fiat SpA.

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Submitted Mar 20, 2010 By: Mudsprings

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Road-Runner Champion Author Denver Posts:3,626 Points:1,228,750 Joined:May 2004	Message Posted: Mar 20, 2010 1:55:12 PM Ignore Road-Runner Report Abuse "Czar" is simply a term which has been attached by the media to certain agency heads and others in the federal government. "Energy Czar" has been used to refer to the head of the federal energy department. In reality it has no validity at all. In much the same way some of us like to refer to health insurance company executives as "Robber Barons".
Tamas2evil Champion Author Pennsylvania Posts:4,442 Points:787,875 Joined:Sep 2006	Message Posted: Mar 20, 2010 1:55:06 PM Ignore Tamas2evil Report Abuse They all should have pay checks less than...$500k
TheDix All-Star Author Ontario Posts:619 Points:116,740 Joined:Dec 2009	Message Posted: Mar 20, 2010 1:49:33 PM Ignore TheDix Report Abuse Over paid for years.If they don't like it join Toyota.
spunky4443 Champion Author Washington Posts:4,019 Points:1,052,195 Joined:May 2005	Message Posted: Mar 20, 2010 1:48:57 PM Ignore spunky4443 Report Abuse Boo-Hoo-Hoo, you really got me feeling sorry for these People who make over $500K, I'm sure there is a lot of other people who feel as I do.
JonDon2010 Rookie Author North Dakota Posts:7 Points:11,130 Joined:Mar 2010	Message Posted: Mar 20, 2010 1:48:41 PM Ignore JonDon2010 Report Abuse why are they getting so much, cut there pay and hire more people and open more factories.
Road-Runner Champion Author Denver Posts:3,626 Points:1,228,750 Joined:May 2004	Message Posted: Mar 20, 2010 1:47:38 PM Ignore Road-Runner Report Abuse Kenneth Feinberg, is the US Treasury Department's "special master for compensation". He is a lawyer, and was previously in charge of the very difficult task of negotiating settlements (from the special federal government fund) to victims of the 911 attacks. He's probably one of the few people in government whom it is doubtful is being overpaid.
ipm1 Veteran Author Las Vegas Posts:262 Points:116,975 Joined:Oct 2009	Message Posted: Mar 20, 2010 1:44:16 PM Ignore ipm1 Report Abuse Hope we all realize that it's nothing but BS. Here is the key sentence: The rules restrict the top 25 executives from receiving more than $500,000 in base cash salary unless a company can prove a good reason for the higher pay. Also, for a large company it's no problem whatsoever to come up with a sizeable "compensation" scheme in addition to the base salary. And, of course, at the end of the day we - THE TAXPAYERS - are paying for all these things.
TBONE3 Champion Author Pennsylvania Posts:3,906 Points:1,007,595 Joined:Mar 2005	Message Posted: Mar 20, 2010 1:43:57 PM Ignore TBONE3 Report Abuse Why doesn't this Czar trim all the Czars. salaries? Why single out GM's? Is it because the government runs GM?
Road-Runner Champion Author Denver Posts:3,626 Points:1,228,750 Joined:May 2004	Message Posted: Mar 20, 2010 1:42:13 PM Ignore Road-Runner Report Abuse Czar, as Feinberg stated on Charlie Rose is really a misnomer, as under our system of government, he Feinberg cannot force anyone to do anything but can only persuade and negotiate.
LoneGuy Champion Author Lansing Posts:3,648 Points:1,362,100 Joined:Aug 2005	Message Posted: Mar 20, 2010 1:40:19 PM Ignore LoneGuy Report Abuse So what is the income of the pay czar and is he like so many other government people who cheat on their taxes?
Road-Runner Champion Author Denver Posts:3,626 Points:1,228,750 Joined:May 2004	Message Posted: Mar 20, 2010 1:38:58 PM Ignore Road-Runner Report Abuse Feinberg discussed this very topic with Charlie Rose the other day, and reminded viewers that the government is obligated to honor any previously signed employment contracts. It will take a good long while to get this problem under control, if GM lasts that long.
VTROCK Champion Author Detroit Posts:1,997 Points:428,730 Joined:Sep 2008	Message Posted: Mar 20, 2010 1:38:40 PM Ignore VTROCK Report Abuse This is what the Government will do to doctors if they get the health care bill passed. It's all about control.
thirteen1 All-Star Author Milwaukee Posts:542 Points:217,230 Joined:Jun 2009	Message Posted: Mar 20, 2010 1:30:44 PM Ignore thirteen1 Report Abuse next headline will read "pay czar trims all workers making over 50k/ year"
BEngr Champion Author Illinois Posts:1,721 Points:616,060 Joined:May 2008	Message Posted: Mar 20, 2010 1:30:20 PM Ignore BEngr Report Abuse While I'm not in favor of the government setting any ones salary, there is an easier way! The government should require these companies to pay a matching amount of the total compensation paid any executive each year as payback for the government bailout. Why should we wait for the companies to pay us back, when they can afford to pay their executives that much money. Think about it, a company deducts salary as an expense when they figure their taxes, therefore they pay less in taxes.
Vette1967 Champion Author Albany Posts:1,404 Points:331,945 Joined:Jun 2009	Message Posted: Mar 20, 2010 1:26:42 PM Ignore Vette1967 Report Abuse The should all be given only $50,000 per year until they turn a profit.
TXGasPriceSpy Champion Author Fort Worth Posts:2,696 Points:506,470 Joined:Sep 2008	Message Posted: Mar 20, 2010 1:26:30 PM Ignore TXGasPriceSpy Report Abuse Good for the czar!!!
thriftymeCA Sophomore Author Oakland Posts:127 Points:31,075 Joined:Feb 2010	Message Posted: Mar 20, 2010 1:26:11 PM Ignore thriftymeCA Report Abuse All the top auto executives should have to forgo any bonuses and live on base salary like the rest of us hard workers.
pdcarver Champion Author San Diego Posts:1,284 Points:245,595 Joined:Sep 2009	Message Posted: Mar 20, 2010 1:25:48 PM Ignore pdcarver Report Abuse can't wait till the government tells me how much I could earn. Do you really think these execs are going to work harder for nothing? Soon may be the same situation with the Doctors.
JoeKR Champion Author New Jersey Posts:4,990 Points:1,112,125 Joined:Feb 2006	Message Posted: Mar 20, 2010 1:24:39 PM Ignore JoeKR Report Abuse In a privately owned company I would doubt there would be too many executives being paid more than their worth unless that company is looking to close.
MidNJ Champion Author New Jersey Posts:1,662 Points:253,605 Joined:Sep 2009	Message Posted: Mar 20, 2010 1:22:17 PM Ignore MidNJ Report Abuse Metro Man, I agree, Ed Whitacre will have a hard time living on only $500,000 a year. However does this impact on the additional 7 million he was to get in stock bonuses?
Art48 Champion Author Sacramento Posts:2,452 Points:81,510 Joined:Feb 2009	Message Posted: Mar 20, 2010 1:19:01 PM Ignore Art48 Report Abuse The "Pay Czar" is enforcing the provisions of TARP passed by the Congress. He is NOT acting on his own: Limits on executive compensation The Act sets some new limits on the compensation of the five highest-paid executives at companies that elect to participate significantly in TARP. The Act treats companies that participate through the auction process differently from those that participate through direct sale (that is, without a bidding process). Companies who sell more than $300 million in assets through an auction process are prohibited from signing new “golden parachute” contracts (employment contracts that provide for large payments upon termination) with any future executives. It will also place a $500,000 limit on annual tax deductions for payment of each executive, as well as a deduction limit on severance benefits for any golden parachutes already in place. Companies in which the Treasury acquires equity because of direct purchases must meet tougher standards to be established by the Treasury. These standards will require the companies to eliminate compensation structures that encourage “unnecessary and excessive” risk-taking by executives, provide for claw-back (forced repayment of bonuses in the event of a post-payment determination that the bonuses were paid on the basis of false data) of bonuses already paid to senior executives based on financial statements later proven to be inaccurate, and prohibit payment of previously established golden parachutes. In other words he is policing them like he should. Would you feel better if they called him The Government Administrator in Charge of Pay? [Edited by: Art48 at 3/20/2010 1:24:04 PM EST]
Hunter114 Champion Author Chicago Posts:3,014 Points:494,320 Joined:Apr 2009	Message Posted: Mar 20, 2010 1:16:24 PM Ignore Hunter114 Report Abuse That's life at Government Motors.
Metro Man Champion Author Flint Posts:1,991 Points:1,048,725 Joined:Sep 2003	Message Posted: Mar 20, 2010 1:14:00 PM Ignore Metro Man Report Abuse Hope this cut won't put Big Ed in the poor house.
geminijax Champion Author Jacksonville Posts:11,559 Points:1,765,220 Joined:Aug 2005	Message Posted: Mar 20, 2010 1:11:35 PM Ignore geminijax Report Abuse Good move! For years, GM execs were collecting fat paychecks for leading the company into ruin, screwing consumers and killing thousands of jobs! Mr. Feinberg, go one step further. How about a clawback of all the fat bonuses GM execs have received in prior years, while GM was sliding towards bankruptcy?
Greg6901 All-Star Author Oakland Posts:577 Points:221,605 Joined:Jan 2010	Message Posted: Mar 20, 2010 1:07:23 PM Ignore Greg6901 Report Abuse How about some money for the workers?
Dipstick1 Champion Author Amarillo Posts:5,140 Points:1,477,790 Joined:Jan 2006	Message Posted: Mar 20, 2010 1:06:44 PM Ignore Dipstick1 Report Abuse Oh, yippity. Why don't we trim the pay czar pay?
Art48 Champion Author Sacramento Posts:2,452 Points:81,510 Joined:Feb 2009	Message Posted: Mar 20, 2010 1:04:33 PM Ignore Art48 Report Abuse Bush sidestepped the constitution with executive orders and appointed 47 "Czars" as well. Who is/has destroyed the Constitution?. Who forced through the "Patriot Act" that steps all over our rights?
us412 Champion Author Arkansas Posts:13,549 Points:1,461,895 Joined:Apr 2006	Message Posted: Mar 20, 2010 1:01:10 PM Ignore us412 Report Abuse If they can't make the big bucks then BO can't squeeze them for more taxes... And then who will pay for the free health care and college and make your house and car payments??? Somewhere there has to be a goose laying the golden eggs but BO wants to kill him so He can eat roast goose for supper.
Art48 Champion Author Sacramento Posts:2,452 Points:81,510 Joined:Feb 2009	Message Posted: Mar 20, 2010 1:00:03 PM Ignore Art48 Report Abuse idigau22 - many are confirmed by the Senate.
BKool Champion Author Michigan Posts:3,030 Points:1,440,895 Joined:Aug 2005	Message Posted: Mar 20, 2010 12:58:17 PM Ignore BKool Report Abuse Our present Administration in D.C. is shameless in it's destruction of our Constitution in their "transforming" of our once great nation. President Obama has wilfully become the 1st third world President of these United States.
Art48 Champion Author Sacramento Posts:2,452 Points:81,510 Joined:Feb 2009	Message Posted: Mar 20, 2010 12:57:23 PM Ignore Art48 Report Abuse rick948 - Then there was G W Bush's "faith czar". I'm sure that's spelled out in the constitution.
idigau22 Champion Author Modesto Posts:16,915 Points:2,366,855 Joined:Apr 2003	Message Posted: Mar 20, 2010 12:56:01 PM Ignore idigau22 Report Abuse Obama has more Czars working for him then Russia ever had! Remember, these people answer only to Obama! Not Congress!!
PithyOpiner Champion Author Stockton Posts:6,953 Points:714,855 Joined:Jun 2008	Message Posted: Mar 20, 2010 12:54:22 PM Ignore PithyOpiner Report Abuse Does this mean that the upper management will quit and go work someplace else? I doubt it. Where else do they have to go? It's not as if thre are a bunch of other auto manufacturers they could take their talent's to. Is there?
theawesome1 Champion Author Cleveland Posts:3,666 Points:811,115 Joined:Aug 2005	Message Posted: Mar 20, 2010 12:51:04 PM Ignore theawesome1 Report Abuse GMC has plenty of money to pay back to USA taxpayers who loaned them cash so the would not liquidate. SO PAY US BACK! ALL MONEY MADE COMES TO US FIRST!
CISA Champion Author Orange County Posts:2,124 Points:679,195 Joined:Dec 2006	Message Posted: Mar 20, 2010 12:48:08 PM Ignore CISA Report Abuse very common in a reorg, for the uninformed, to impose salary restrictions and renegotiate union wages (unless your creditor is BHO and the unions are protected)
rick948 Veteran Author Toledo Posts:342 Points:1,005,990 Joined:Jan 2004	Message Posted: Mar 20, 2010 12:43:46 PM Ignore rick948 Report Abuse "PAY CZAR"??? Where in the US Constitution does it give ANYONE permission to "appoint" a "pay czar"??? FIRE HIM!!! I'm not sticking up for the "execs" at Government Motors (formerly General Motors) but Obama has WAY TO MANY 'CZARs"!!! FIRE THEM ALL! SAVE THE TAXPAYERS SOME MONEY!!! SLASH POLITICIANS SALARIES ACROSS THE BOARD AND IMPOSE TERM LIMITS! ELIMINATE CAREER POLITICIANS!!!
fordfan1 Champion Author Indiana Posts:4,204 Points:918,115 Joined:Jul 2007	Message Posted: Mar 20, 2010 12:42:00 PM Ignore fordfan1 Report Abuse This is so wrong in so many ways it is not funny. These are the kinds of things we can look forward to when the Health Care bill that we do not want becomes law tomorrow night. But the crooks in Washington need to remember November will get here and they will be going bye bye on January 1st!
mooneagle Champion Author Oklahoma City Posts:3,831 Points:787,115 Joined:Jun 2008	Message Posted: Mar 20, 2010 12:37:25 PM Ignore mooneagle Report Abuse wish the Gov wold let them go bankrupt
AC-302 Champion Author Los Angeles Posts:14,893 Points:1,949,635 Joined:Aug 2004	Message Posted: Mar 20, 2010 12:36:45 PM Ignore AC-302 Report Abuse I agree that federal bureaucrats also need to have their pay re-evaluated and cut.
Sam195 Champion Author San Bernardino Posts:3,235 Points:622,275 Joined:Oct 2008	Message Posted: Mar 20, 2010 12:35:27 PM Ignore Sam195 Report Abuse I'll bet those guys will work hard to get GM out of government control.
ChuckGVT Champion Author Vermont Posts:2,121 Points:736,420 Joined:Apr 2008	Message Posted: Mar 20, 2010 12:34:54 PM Ignore ChuckGVT Report Abuse More abuse of power by nobama and his henchmen.
snewwee Champion Author Detroit Posts:5,004 Points:1,017,030 Joined:Sep 2007	Message Posted: Mar 20, 2010 12:34:28 PM Ignore snewwee Report Abuse Try trimming the salaries of most of the professional athletes. No wonder it cost so much to watch overpaid people play games.
baddog58 All-Star Author Texas Posts:986 Points:430,475 Joined:May 2007	Message Posted: Mar 20, 2010 12:34:09 PM Ignore baddog58 Report Abuse Great! Now use the same approach with the National Highway Traffic Safety Administration and some of the other incompetent governmental agencies (FEMA, etc.)
Grismer Champion Author Kitchener-Waterloo Posts:3,722 Points:769,740 Joined:Apr 2008	Message Posted: Mar 20, 2010 12:34:09 PM Ignore Grismer Report Abuse A good first step.
HailstormCA Champion Author San Diego Posts:3,492 Points:611,125 Joined:Nov 2008	Message Posted: Mar 20, 2010 12:33:36 PM Ignore HailstormCA Report Abuse I hear the sound of feet. Moving towards the door.
BlueVanGroup Champion Author Colorado Posts:2,280 Points:579,335 Joined:May 2008	Message Posted: Mar 20, 2010 12:33:35 PM Ignore BlueVanGroup Report Abuse Where does the Constitution give the federal government the power to use taxpayers' hard-earned money to buy corporations?
nehemiah Champion Author Portland Posts:1,037 Points:137,695 Joined:Jul 2007	Message Posted: Mar 20, 2010 12:33:25 PM Ignore nehemiah Report Abuse more than enough if we based it on their performance
balljars Champion Author Michigan Posts:3,658 Points:726,250 Joined:Aug 2008	Message Posted: Mar 20, 2010 12:32:13 PM Ignore balljars Report Abuse It wont do any good they will find a way around it.
adr47 Champion Author Saskatchewan Posts:2,416 Points:541,445 Joined:Nov 2008	Message Posted: Mar 20, 2010 12:31:57 PM Ignore adr47 Report Abuse Still more than those turkeys deserve
2907 Champion Author Kentucky Posts:1,444 Points:790,770 Joined:Aug 2005	Message Posted: Mar 20, 2010 12:31:49 PM Ignore 2907 Report Abuse Less pay equals less quality.
Goatroper Champion Author Dallas Posts:2,081 Points:420,090 Joined:Apr 2004	Message Posted: Mar 20, 2010 12:31:20 PM Ignore Goatroper Report Abuse Just one step closer to the Democratic ideal of a socialist government. Cradle to grave, don't worry about anything....we'll take care of you. You're too dumb to think for yourself, let us do that for you.
abuck Champion Author Pittsburgh Posts:3,309 Points:593,095 Joined:Jul 2008	Message Posted: Mar 20, 2010 12:30:09 PM Ignore abuck Report Abuse Something that actually makes some sense....