The chief executive officers of American International Group Inc. (AIG), Ally Financial Inc. and General Motors Co., (GM) which received government bailouts, won’t get an increase in total compensation this year, the U.S. Treasury Department said.
“Although there has been some modification in the mix of stock salary and long-term restricted stock for the CEO group, the overall amount of CEO compensation is frozen at 2011 levels,” according to a Treasury statement today in Washington.
The Treasury said the top 69 executives at the three companies saw their total cash compensation decrease 18 percent and their direct compensation drop 10 percent from 2011 levels.
The three companies have received “exceptional’ assistance from the Troubled Asset Relief Program. Earnings for the top 25 executives at the bailed-out companies must be approved by Patricia Geoghegan, the Obama administration’s acting special master for executive compensation.
This was the second year in a row for a CEO pay freeze, according to the Treasury. Robert Benmosche is the CEO of AIG, and his counterparts are Michael Carpenter at Ally and Dan Akerson at General Motors.
AIG received about $68 billion from the bailout program; GM received $50 billion; and Ally accepted $17.2 billion.
The TARP special master annually determines the compensation levels for institutions that received exceptional assistance from the bailout program. The Treasury decides the amount based on criteria including incentives for excessive risk, the company’s ability to repay Tarp, and performance-based compensation structures.
Treasury also gave exceptional assistance to Bank of America Corp., Citigroup Inc., Chrysler Financial Corp., and Chrysler Group LLC, which have all exited the rescue program.
To contact the reporters on this story: Cheyenne Hopkins at Chopkins19@bloomberg.net;
To contact the editor responsible for this story: Christopher Wellisz at firstname.lastname@example.org