WASHINGTON — The Obama administration's pay czar is limiting 2010 compensation for top executives at GMAC Inc. because the auto finance giant continues to lose money and can't yet repay its $16.3 billion taxpayer bailout, according to people familiar with the negotiations.
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 and no cash, 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 or repay its bailout.
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 Inc., General Motors and Chrysler.
Read on.
Maybe this is why:
GMAC chief gets $1.2 million in pay for 45 days’ work
And FYI on GMAC:
On December 29, 2008, the United States Department of the Treasury gave GMAC $5 billion from its $700 billion Troubled Asset Relief Program (TARP).
In December 2008, after GMAC had been hit with huge losses in both its mortgage and auto loan businesses, the Federal Reserve Board approved with a 4 to 1 vote GMAC’s application to transform itself into a bank holding company “in light of the unusual and exigent circumstances” affecting the financial markets.
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