"Have Feinberg sign your report card and bring it back to me, understand?"
Feinberg, the Obama administration's "special master" on executive payEnvy Czar, is due to receive compensation proposals by tomorrow from Citigroup Inc., American International Group Inc., Chrysler LLC, Chrysler Financial Corp., Bank of America, GMAC Inc. and General Motors Corp. The companies must tell him how they plan to pay the 25 top-earning employees. Feinberg will rule on the plans within 60 days after they're completed.
Governments worldwide are examining the pay of bankers blamed for fueling the worst financial crisis since the Great Depression. The U.K.'s financial regulator today told British banks to comply with new rules to limit bonus payments. Swiss lawmakers today rejected a plan to limit pay at UBS AG after the bank posted a record loss.
Given the success of Toxic Bonuses, we wouldn't be surprised to see a lot of plans include these sorts of tools, and a lot of bankers getting even richer than cash bonus plans ever would have made them.
Feinberg's Pay Decisions Be Wall Street Template [Bloomberg]