October 21st, 2009
04:41 PM ET
5 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. Brad

    Where is my "bail out". I have had to take multiple pay cuts! Thanks GEORGE! Thanks DICK! We really appreciate you destroying America's economy! Osama is proud of the two of you because you did his work for him!

    October 21, 2009 05:16 pm at 5:16 pm |
  2. Wake Up

    Obama believes he can control anyone and everyone.
    Here's an idea. NO BAILOUTS! NO more giveaways! NO more increase in size of government. STOP!!! Obama YOU have put us in 1.42 Trillion in debt this year!! Get out of our pockets. This isn't mob chicago politics.

    October 21, 2009 05:19 pm at 5:19 pm |
  3. single mom

    What about the companies who didn't want any federal money and were forced to take it?
    I will support no more golden parachutes. I had my accounts in Washington Mutual (note the past tense, please!) and was stunned to read that a CEO came in for 18 DAYS last September and earned a million dollars a day!!
    What?? That's insane.

    October 21, 2009 05:20 pm at 5:20 pm |
  4. not alone

    why not redirect this pay to hiring and keeping american workers in the US instead of shipping out jobs to make the boss look good(lean managment has ruined America).Seems that everytime I look we are still shipping jobs off shore for cheaper labor abroad.Why not end this free trade crap wich is not free trade and start thinking about the of needs off all the folks that have lost jobs to this so called new economy and not the richest 1% For once.Where are the tax insentives promised to the employers to keep or creat jobs in the US promised by Oboma? Seems no word on that as of yet, only empoyer based insurance taxes.We need a party that cares for the american worker and not the phat over paid bosses.

    October 21, 2009 05:20 pm at 5:20 pm |
  5. John G

    Bail out or not, they don't work for Obama and therefore cannot be ordered to do a darn thing by him.

    October 21, 2009 05:22 pm at 5:22 pm |
  6. Sniffit

    "Now it begins."

    Indeed, and the Wall Street pimpslap festival won't stop until we're sure those executive wh-res won't give the country's economy another case of crabs again.

    October 21, 2009 05:22 pm at 5:22 pm |
  7. David

    It's about time. They failed 100%. They lose 50%.

    October 21, 2009 05:26 pm at 5:26 pm |
  8. Jane/Seattle

    Well either Barack Obama is one smart man and has some private plan for enacting this hopeful agenda or he is fooling us better than we could ever have dreamed possible. I want so much to believe that some of these progressive proposals are really heartfelt and will actually change the entrenched corporate culture and robbery which defines our current situation. Could this money by any chance be re-directed to MAIN STREET? Or is this a gesture to persuade us some change is coming while the real fix is in already? I've lived so long now, I trust no one in government and certainly not in business!? We're patiently waiting to see the Real Deal Unfold. Peace

    October 21, 2009 05:28 pm at 5:28 pm |
  9. Windfall

    To those who say Obama should stay out of it...

    Your tax dollars saved these jerks from ruin because without them, our economy would collapse. So now we get to have a say in what they do. End of story.

    October 21, 2009 05:32 pm at 5:32 pm |
  10. RTB

    It is criminal what some of these execs. are paid, particularly in light of the fact that they have done such a lousy job for their companies to need bail-out money. I believe there ought to be a ceiling on the pay these greedy folks get.

    October 21, 2009 05:32 pm at 5:32 pm |
  11. MatthewDetroit

    Why doesnt the white house make all the senate and congress take 25% pay cuts. That would be a proper start.

    What about cutting their staffs by 50%. That would be a start.

    What about cutting the Czars on staff by 50% that would be a start.

    What about cutting congress's expense account by 50%.

    What about cutting the health care bill out.
    What about cutting the stimulus package in half and use it ONLY for building roads and infrastructure.

    STOP THE UNIVERSAL HEALTHCARE BILL.

    MASSACHUSETTES DID NOT GET IT DONE. THE PRICES WENT UP 42%. 42% and they are raising taxes. They are penalizing individuals. STOP THE MADNESS. STOP CONGRESS.

    October 21, 2009 05:32 pm at 5:32 pm |
  12. ran

    Yes and yes. I hope the big pay days for all the executives are soon gone.

    Now maybe I can get a decent interest rate on my bank accounts.

    This has been too long in coming.

    A great day for the real working person.

    October 21, 2009 05:34 pm at 5:34 pm |
  13. Kim

    Atta way, O! Hold their feet to the fire. You accept bailout money, there needs to be strings attached. As simple as that.

    October 21, 2009 05:36 pm at 5:36 pm |
  14. Tim

    See what happens when you put stupid people in charge. How many of these top executives will stay on at these banks? They can go elsewhere and get much more, and won't be second guessed on everything they do. My prediction, 90% of the top executives leave in the next two years.

    Obama should make sure he counts these against his jobs created or saved goal.

    October 21, 2009 05:36 pm at 5:36 pm |
  15. MatthewDetroit

    Barack just spent 1.42 Trillion ADDITIONAL to the National DEBT.

    His estimate is 1.4 Trillion for each of the next 3 years.

    He is spending and DOUBLING the NATIONAL DEBT when he complained about President Bush. President Bush added 5 Trillion the natioinal debt.

    BARACK is set to DOUBLE that in 4 years. NOT 8. 4 Years.
    STOP THE SPENDING. ALL SPENDING NOW.
    CUT EVERY SINGLE PROGRAM BY 10-15% NOW.
    NO ADDITIONAL SPENDING.
    NO NEW SPENDING.

    STOP SPENDING YOU LIARS.

    October 21, 2009 05:37 pm at 5:37 pm |
  16. Tanya

    YES! YES! YES! And, this should be just the tip of the iceberg. When is regulation of the Wall Street/Banker yahoos going to kick in? When will compensation of top executives be reduced to a 20/1 ratio to average workers??? There are plenty of competent people waiting to replace these greedy, overpaid executives, they are not the best!!

    And, when will rewarding executives for offshoring jobs stop? Some jobs will most likely need to stay offshore to reduce production costs, and, there is benefit to providing opportunitiy to other countries, but, many jobs have been sent offshore to make just the few at the top wealthy, while decimating our middle class.

    Unbridled greed has contributed to this great recession...all these bailouts will have been useless without regulation NOW!

    October 21, 2009 05:38 pm at 5:38 pm |
  17. Steve

    So, people say stay out of it Obama? You must be crazy!!! They have how many millions, or billions to these companies to keep them up and running and they downsize and lay off people then keep their fat bonus and paycheck and you think thats ok?? Its criminal, there will be no "middle class", its going back to the rich and the poor, and the rich are getting richer and the poor keep getting poorer. Its time to wake up and understand that you don't need to make millions a year to live, look it all the crime and poverty, people forced to try and survive by any means, and then there is mr. rich CEO with 10 cars and 2 yahts and a summer home... give me a break. Where is the justice?

    October 21, 2009 05:39 pm at 5:39 pm |
  18. MatthewDetroit

    While the White House demonizes all business out there....

    Our Chicago Fraud Barack President is expanding goverment...

    Hey idiot... who is going to pay for it.... the goverment produces nothing

    but additional debt.... we lose money for EVERY dollar they spend and

    every JOB that they produce. It is called a NEGATIVE SUM gain.. WE LOSE we ALWAYS lose.

    Stop spending Barack. You lied about illegals receiving healthcare... you lied about the death panels... YOU are lying now.

    October 21, 2009 05:40 pm at 5:40 pm |
  19. ~The Foxx~

    When will you folks understand that this is just the beginning and soon this admin. will tell you how ,much YOU can make!

    October 21, 2009 05:41 pm at 5:41 pm |
  20. John from California

    It's about time, no executives are worth that much money. The republicans spent a large amount of time on television last year complaining about workers making $70/hour but, they were silent on executives making $10000/hour.

    The republicans don't run Washington anymore so, get over it!

    October 21, 2009 05:43 pm at 5:43 pm |
  21. Doesn't Solve Problem

    The top 25 executives at these firms are less than a spec of dust compared to the whole compensation problem. Plus, you can't mess with a free market.

    The real problem lies at the lower levels of these banks, people making $1M-$10M a year who are making the trades and structuring the derivatives that got us in trouble in the first place. This doesn't at all address the broader compensation problem related to this group of people. How is cutting pay of the top 25 people (at a company with 50k employees) going to change anything????

    Wake up American people, I hope you like the "change" you voted for.

    October 21, 2009 05:43 pm at 5:43 pm |
  22. JES

    That's great but what about the approved pay raises for our Senate and Congress. Why can't they feel the pain too. I haven't received a pay raise in two years and doesn't look like we will receive one next year.

    They government keepsspending my money what happens when I am paying for the government more than I get for my family. We are almost there now.

    October 21, 2009 05:43 pm at 5:43 pm |
  23. D. Tree

    Well no wonder all the rich special interests are against Obama – he's making them play fair and they don't like that.

    They just want to keep controlling 90% of the wealth for themselves, while the rest of America is unemployed and losing their homes.

    Its those same special interests that are against Health Care reform and Energy Reform.

    October 21, 2009 05:44 pm at 5:44 pm |
  24. GEdwards

    There's a "pay czar"??????

    When will the WH cut the salary of their top 25 paid employees by 50%??? I'm sure that'll include a few of the dozens of "czars."

    How do I become the czar of czars?

    October 21, 2009 05:47 pm at 5:47 pm |
  25. Lynda

    Obama didn't put us in all this debt by himself, when will you republicans take part of the blame for the debt that Bush put us in.........Obama is just trying to undue the mess Bush left this country in.......you republicans are just afraid that the measures Obama has taken will put us back on track and that will further make the GOP look like the morons that you already are.....The debt Bush put us in ruined the future for our kids and grandkids.......and the debt has continued to grow and probably will continue to grow more........so we all know that our kids are going to be paying for this debt........we've had to do it in the past and we will probably being doing it again.......especially if the Republicans get back into office

    October 21, 2009 05:49 pm at 5:49 pm |
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