Pay Czar to Limit Top GMAC Execs' Compensation
WASHINGTON - The Obama administration's pay czar is limiting 2010 compensation for top executives at GMAC because the auto-finance giant continues to lose money and can't yet repay its $16.3-billion taxpayer bailout, people familiar with the negotiations told The Associated Press.
Only one of the top 25 earners at GMAC will earn more than $500,000 in cash, and CEO Michael Carpenter will receive only stock compensation, said the people, who spoke on condition of anonymity because they were not authorized to discuss the talks.
The agreements follow months of wrangling with Kenneth Feinberg, the Treasury Department's special master for executive compensation. They reflect his concern that GMAC has no plan to return to profitability.
Feinberg is expected next week to announce 2010 pay packages for the top 25 earners at companies that continue to rely on "extraordinary assistance" from the government, including GMAC, American International Group, General Motors and Chrysler.
Last year, Feinberg allowed two GMAC executives to exceed the $500,000 cash cap, and granted Carpenter an annual pay package worth $9.5 million. After becoming CEO in November, Carpenter earned about $1.2 million, including about $120,000 cash, for six weeks' work.
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