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Pay Cuts

By Anonymous

Hahaha. Get 'em, Ken:

Executives at seven bailed-out companies including Citigroup Inc. and Bank of America Corp. will have their pay cut about 50 percent after negotiations with Kenneth R. Feinberg, the Treasury Department?s special master on compensation, two people familiar with the matter said.

Cash salaries for the 25 highest-paid employees will be slashed 90 percent under Feinberg?s plan, which will be announced this week, one of the people said today on condition of anonymity. Employees at the derivatives unit of American International Group Inc., blamed for insurer?s near-collapse last year, can receive no more than $200,000 in total pay, one of the people said.

Good. Jerks.

The best part is this:

All perks such as limousine service and private aircraft valued at more than $25,000 must be approved by Feinberg, one of the people said.

Add: This is going to make for some interesting conversations. "Hello, Ken? This is Johnny Risktaker, I trade MBS for Citi. I need to fly my mistress to the South of France for the weekend on a private jet. No biggie. Whaddya say?"

Full post as published by Economics of Contempt on October 21, 2009 (boomark / email).