October 21st, 2009
04:41 PM ET
9 years ago

White House to push for big pay cuts

NEW YORK (CNNMoney.com) - The Obama administration will soon order the nation's biggest bailed-out companies to drastically cut pay packages for their top executives, according to several reports published Wednesday.

Kenneth Feinberg, who was the White House's so-called "pay czar" in June, is expected to demand that the seven largest bailout recipients lower the total compensation for their top 25 highest paid employees by 50%, on average, according to reports in both the New York Times and Wall Street Journal.

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Filed under: Obama administration • Wall Street
soundoff (58 Responses)
  1. Kel

    Good. We bailed them out because they were too big to fail. Now they need to pay us back. No more huge bonuses for big-time CEOs at the expense of American citizens.

    October 21, 2009 04:45 pm at 4:45 pm |
  2. Kris Holtan

    About time too!

    October 21, 2009 04:47 pm at 4:47 pm |
  3. Tom

    Even with the pay cuts, they'll find a way around it to award some sort of stealth bonus or such. Just like before.

    When there is greed, nothing changes. Same selfish people who couldn't care less about the rest of us.

    October 21, 2009 04:47 pm at 4:47 pm |
  4. Felonious Monk

    I say let America go under. It was a good ride while it lasted. It seems as though that is the general idea going round in washington.
    Goodbye America

    October 21, 2009 04:49 pm at 4:49 pm |
  5. Eric, From his pedestal

    It's about time! I don't care if a bunch of crooked CEO's have an equally crooked contract promising them the income of a thousand working class families. Forget a bonus! I'm for deportation!

    October 21, 2009 04:50 pm at 4:50 pm |
  6. Matt

    Good thing GE has been ripping off America for years or they would have to take a paycut as well. You got to Pay to Play with Obama, just ask Hillary.

    October 21, 2009 04:50 pm at 4:50 pm |
  7. Ben in MO

    in most cases i would be wholely opposed to this as it flies in the face of capitolism, but since the fat cats are getting rich from my tax dollars i say cap the heck out of them!
    These jackholes don't understand true capitolism anyway and the bums should be out of business, but i digress.

    October 21, 2009 04:51 pm at 4:51 pm |
  8. Wake Up

    Where in the constitution is the section of allowing 60+ czars that have no oversight from the people (congress)? Obama is getting away with stomping all over the constituion once again. Can you Obamabots at least agree with that? Obama thinks he's a dictator...he's not!
    Who approves the Czars budgets? Who voted for them? NO ONE

    October 21, 2009 04:54 pm at 4:54 pm |
  9. Johnny DC


    Stay out of it.

    WHAT IS WRONG WITH YOU PEOPLE? I don't care if this was a move by a Republican or a Democrat - if ANY candidate had this kind of move on their platform, I would vote for just about anybody else.

    October 21, 2009 04:54 pm at 4:54 pm |
  10. Buddy Gilmour

    In addition they need to break these mega-corps into many more smaller companies any/many of which can be allowed to fail without threatening the entire US banking system. Our government really failed us by allowing so many mergers, its time to un-do them.

    October 21, 2009 04:56 pm at 4:56 pm |
  11. S Callahan

    Here's another joke....the profits are over the margin...greater than before their near downfall....now they get to keep 50%.....where is the change we have been promised! There is no cynical thoughts here...it just baffles me that government officials in office now...and the Federal Reserve close knit group think we are all idiots......people are pissed, and rightly so! I know I am!

    October 21, 2009 04:56 pm at 4:56 pm |
  12. Sniffit

    They should be glad....alot of us would be cutting something else if we could get our hands on these scumbags.

    BTW, cut the crap with the "free market capitalism" rants and learn something about the Constitution. The federal gove't gives you money and it can attach whatever strings it wants to it: you are FREE not to take it. These moneygrubbing jerkwads didn't want their cashcows to go under so they got in bed with the devil...they shouldn't be suprised nor heard to complain when they find their you-know-whats sore in the morning.

    October 21, 2009 05:02 pm at 5:02 pm |
  13. Carlos

    Why don't the WH start with their own paychecks and the thirty or forty "czars" that are making about 170k each, naw they wouldn't want to do that now would they?

    October 21, 2009 05:04 pm at 5:04 pm |
  14. LIP

    Now we're talking. Pay cuts for everyone!
    Does this include our fat cat Senators and does it make it manadatory, that Lobbyists can no longer stuff money into their pockets? When this happens, then I'll take this administration seriously. Cutting a few million from someone's salary that was making millions and millions every year is not really doing anything other than grandstanding. Let's get those involved that give to the American people all those tax and spend woes that are the real root of the problem.
    Let's get really serious!

    October 21, 2009 05:05 pm at 5:05 pm |
  15. Reagan was wrong

    Basically, what the Obama administration has to do is reverse all the things that the Regan administration got wrong 30 years ago.

    "A strong military" eventually led to the US invading a sovereign nation.
    "Trickle-down economics" funneled half the nation's wealth into the hands of the richest 1%.
    "Deregulation" allowed financial institutions to take colossal risks and ultimately led to our current financial crisis.

    People who have virtually deified Reagan will naturally oppose these changes, but it makes no sense to keep doing things the wrong way just to placate 20% of the population.

    October 21, 2009 05:06 pm at 5:06 pm |
  16. red state Tenn

    I would loke to see these know nothing do nothing so called Czars have there pay cut by about 110% and soon.. How in the hell can you get the best people to work for 90% less?????????????????

    October 21, 2009 05:07 pm at 5:07 pm |
  17. Steve (the real one)

    I heard as high as 90%. I guess now they know that government "bail out. money comes with cables (not strings) attached!

    October 21, 2009 05:07 pm at 5:07 pm |
  18. minnie

    I wish the government and Obama would stay out of things that does not concern them. They are trying to take over our lives.

    October 21, 2009 05:07 pm at 5:07 pm |
  19. George Guadiane - Austerlitz

    If a company (ANY COMPANY – like car companies, in this case) can find ways to break decades old "iron clad" retirement CONTRACTS with people, some of whom will end up in the streets, as a result, why can't a company (ANY COMPANY) find a way to break (or at least renegotiate) the contracts of fat cat executives who have no CHANCE of starving to death or living in the streets?
    I'm sure it's the same lawyers, making the same agreements for the same companies...

    I'm just sayin'

    October 21, 2009 05:08 pm at 5:08 pm |
  20. Bill

    Now it begins.

    October 21, 2009 05:09 pm at 5:09 pm |
  21. katiec

    Good, it is about time something is done to stop these thieves.
    They are criminals in their actions.

    October 21, 2009 05:09 pm at 5:09 pm |
  22. C. Farrell, Houston, Tx

    It's the right thing to do if these people have no honor about them. We as tax payers gave them a helping hand up and not a hand out to commit theft. Forget about the bank robber, the banks are the robbers.

    October 21, 2009 05:12 pm at 5:12 pm |
  23. Bob

    The best way to punish these businesses would have been not to give them our tax dollars and bail them out.

    I wonder if that ever crossed a politicians mind or was just the power crab running through there brain cell?

    October 21, 2009 05:15 pm at 5:15 pm |
  24. About time

    Absolutely right.

    Once they stop living off taxpayer welfare they can set their own compensation.

    October 21, 2009 05:15 pm at 5:15 pm |
  25. Gene

    I know there's gonna be a bunch of people screaming that the government has no right to tell private companies what they should be paying their execs.

    In normal circumstances, I would have to agree. But since those execs are getting paid by OUR money.. bailout money.. I think the government has every right to regulate their pay until the bailed out companies pay that debt back.

    October 21, 2009 05:15 pm at 5:15 pm |
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