Firms may face talent drain: Feinberg

Feinberg, who was appointed to the Treasury post in June, slashed pay American International Group Inc., Citigroup Inc., Bank of America Corp. and four other firms that got more than one round up aid from the US$700 billion Troubled Asset Relief Program. Total pay for 136 executives at the firms was cut by an average of 50 percent and cash salaries were reduced by about 90 percent, he said in an Oct. 22 report.

Feinberg said he will complete compensation reviews for the 26th to 100th highest-paid executives at the seven companies and submit his findings later this month or in early December. Revised 2010 pay guidelines for the top 25 executives at the firms will be completed by the end of the first quarter next year “so that they'll have more of an impact,” Feinberg said.

“The primary role of what we're doing is to see to it that these seven companies pay back the taxpayer,” he said. “That's what we're really trying to do.”

Feinberg, who oversaw the September 11th Victim Compensation Fund, is also responsible for setting pay at Chrysler Group LLC, Chrysler Financial Corp., General Motors Co. and GMAC Inc.

Often referred to as the Obama administration's “pay czar,” Feinberg called the title -- rooted in Russian monarchy -- “very unfortunate.”

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