Treasury Orders Pay Cuts for Rich Guys at Bailed-Out Companies

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The Obama administration has decided what to do about those exorbitant executive salaries it's always complaining about — slash 'em! Over the next few days, pay czar Kenneth Feinberg will order the seven companies that received the most bailout money (Citigroup, Bank of America, AIG, GM, Chrysler, and the financing arms of both car companies) to cut the compensation of their 25 highest-paid executives by 90 percent. They'll still get bonuses, though, and go home with an average of 50 percent of what they did last year. They'll also have to get government permission for any perks exceeding $25,000, including country-club memberships, privates planes, limos, and other absurd things these guys expect their companies to buy for them. Of course, as long as they stick to those $24,999 perks, they can get away with whatever they want!

U.S. to Order Steep Pay Cuts at Firms That Got Most Aid [NYT]