Pay Czar to Slash Compensation at Seven Firms

DEBORAH SOLOMON
Wall Street Journal
October 21, 2009

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WASHINGTON — The U.S. pay czar will slash compensation for the 25 highest-paid employees at seven firms receiving large sums of government aid and demand a host of corporate-governance changes at those firms, according to people familiar with the matter.

Kenneth Feinberg, the Treasury Department’s special master for compensation, will lower total compensation for 175 employees by an average of 50%, these people said. As expected, the biggest cut will be to salaries, which will drop 90% on average.

But while the overall levels will fall, some executives will still walk away with large paychecks. For instance, several Bank of America Corp. employees will still receive compensation totaling millions of dollars.

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