Attention bailout companies get ready Washington is coming for your wallets. According the New York Times Kenneth Feinberg the US Treasury special appointee for executive compensation will order salary cut up to 90% of the 25 highest paid employees this would include benefits, salaries and bonuses.
This affect the following institutions including Citigroup, Bank of America, American International Group,General Motors and Chrysler and their finance houses. For example AIG which received $180 billion in bailout funds. The top executives will make no more than $200,000 . Imagine a person going from tens of million of dollars to a fraction of that. Wow!
If that not enough if an executive that want any perk that is over than $25,00 including limousines, private jets, joining a country club or company car they must get permission from Feinberg.
The Fed demand AIG to get back about $200 million in bonuses from AIG financial service division.