Top executives at three companies bailed out by U.S. taxpayers during the 2008 financial crisis were ordered to take pay cuts by the federal government.
“It is the second straight year the government’s special master [a position created by the Obama administration to monitor pay practices for bailed out companies], Patricia Geoghegan, has taken this step,” CNN Money reports.
The Treasury Department says nearly 70 executives at American International Group Inc. (AIG), Ally Financial Inc. and General Motors Co. had their annual compensation reduced by 10 percent. The CEOs of each company had their pay frozen at 2011 levels.
All three companies have yet to repay what they received from the $700 billion bailout and therefore are subject to pay cuts.
AIG still owes taxpayers around $50 billion. General Motors owes about $25 billion. Ally Financial about $12 billion.