Treasury division approved massive exec compensation bundles during Troubled Asset Re
When a number of large corporations went to the government for a bailout during the recession several years back, one of the first things the American people wanted curbed was exec compensation. A business that unsuccessful miserably and wanted TARP help shouldn't be lining already lined pockets. However, a new report has found exec payment barely dipped even while a number of firms, such as General Motors, American International Group and Ally Financial, were receiving Troubled Asset Relief Program funding. Article resource:
Still paying a ton to executives
When the Troubled Asset Relief Program was first started, most people grumbled that American tax dollars were being used to bail out the big corporations responsible for their own ruin. On top of it, there were exec bonuses still going out regardless of the truth that the federal government was paying for every little thing. Nobody seemed to like the program.
The Wall Street Journal reports that about 40 executive payment packages of over $3 million were approved by the Treasury Department. In fact, 16 of them got over $5 million in payment in 2012. Evidently, the government was not too offended that executives were getting paid so much.
Anger is phony, pay the crony
The treasury had to release a report about the payment packages approved. There has been a ton of criticism from Special Inspector General for Troubled Asset Relief Program Christy Romero because Patricia Geoghegan has been allowing massive salary increases to be approved at the companies that got TARP funds.
A lot of executive payment raises were seen at GM, Ally Financial and other companies which were getting the most criticism.
During the most active times for TARP, between 2007 and 2012, much of the federal government, such as Congress and the White House, ordered salaries capped, though variances could possibly be granted.
Limit of bonuses set
The Troubled Asset Relief Program financed companies were told that they were not allowed to pay professionals over $450,000 initially. Anyone who chose not to break the barrier still got paid a lot of cash considering they were given about 10 times the national median household income. There were also sixteen workers that got $5 million in bonuses in 2012, including nine at AIG, four at Ally and three at General Motors.
In 2012, GM CEO Dan Akerson got $7.3 million in stock and $1.7 million in cash.
Patricia Geoghegan signed off on a total of $6.2 million in raises for the top 16 workers.
Keeping executives around
All told, seven businesses received dispensation for larger pay packages between 2009 and 2011. In many cases, it was asserted that exec payment among TARP-funded firms had to be kept high to be able to "retain" or recruit top executives. Geoghegan alleges the report "mischaracterizes" and is inaccurate.
Wall Street Journal