Executive compensation rules are not driving away talent at seven affected banks, said Kenneth Feinberg, the Obama administration’s “Pay Czar.”
Feinberg said Thursday the restrictions were “based on fact, cooperative input and evaluating evidence presented to him,” said a MarketWatch report.
“I don’t believe we are discouraging talent,” Feinberg said at a Bloomberg Summit in Washington. Feinberg’s comments come after reports that American International Group Inc. Chief Executive Officer Robert Benmosche told the company’s board he was considering resigning, in part, because of concerns about pay cuts imposed by Feinberg.
He also suggested that the government would allow automakers flexibility to proved “lateral” offers to hire new executives, according to Reuters.
“If General Motors or any other company wants to bring someone in laterally — laterally — and competitive pay packages require that lateral hires get certain competitive pay, what have you, we’re perfectly willing to examine that,” Feinberg said.
To date Feinberg oversees compensation packages to top executives at companies that received federal bailout packages – AIG, Bank of America, Citigroup, Chrysler, General Motors (GM), and the two car companies’ finance affiliates, GMAC and Chrysler Financial.
(Image courtesy of Wikimedia Commons)
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