Feinberg Says ‘Talent Drain’ May Face Firms Under His Pay Rules

[ej510]

By Julianna Goldman
http://www.bloomberg.com/apps/data?pid=avimage&iid=iyhYvkncTJTA
Nov. 2 (Bloomberg) -- Kenneth Feinberg, the Treasury Department’s special master for executive pay, acknowledged his rulings could lead to a talent drain at seven companies facing compensation restrictions tied to “exceptional” U.S. aid.

“Of course there’s a risk” key employees will flee firms under his jurisdiction, Feinberg said today at a roundtable discussion in Washington. “There is nothing more important in our mandate than making sure these companies thrive,” he said, adding that he has worked with companies to minimize defections.

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 of aid from the $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.”

“First of all, my grandmother in Lithuania would be confused beyond belief,” he said, referring to the Baltic nation once ruled by Russian czars.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aeRFOUWPVEB4

[Me.]

1. Right....And Where Exactly Are These Geniuses

Who brought about the meltdown going to go?

[Mz Pip]

3. Indeed.

Perhaps they will go into teaching, or join the Peace Corp. :sarcasm:

No they will suck it up, still make more money than 99% of the population and be glad they aren't all in jail.

[JuniperLea]

5. Exactly!

Where are these mega paying companies that are doing so well they are just going to swoop up all these high priced whores?

[ej510]

6. Nowhere this is an excuse to give out those outrages bonuses.

[Raineyb]

2. Brain drain my ass!

I'm sure that there are people out there who aren't crooks who could run these banks for the smaller paychecks. The sense of entitlement with these companies is unbelievable! They are not that special; they need to get over themselves.

[atreides1]

4. What Talent???

These so called "talented" people are the perfect definition of "Fuck up and move up"!!!

[elehhhhna]

7. who in hell would want to recruit these morans? LOL they're insane.

[Sinti]

8. Business in general is results oriented

If they're worried about losing the talent they have due to lowered wages (lowered from ludicrous to ridiculous), obviously what we have now must be the results they were looking for. To say anything else defies logic.

There are only so many nice suits a man can wear and only so many good meals he can eat, after that it's just a pissing contest.

[damntexdem]

9. A drain of the talent that brought on an international financial meltdown?

Ooh, how very scary!

LOL!

[Kansas Wyatt]

10. And this is a problem?

:shrug:

Shouldn't they think it was the solution?

[Nikki Stone1]

11. So let those financial companies OUTSOURCE or hire cheaper folk on H1B visas.

Everyone else is doing it. Let the Wall Street crooks lose their jobs to foreign crooks. :)

[JerseygirlCT]

12. Yes, well, this is the "talent" that got us into the mess

I suspect we might do well to let that swamp drain right on out.

[ej510]

13. How do these corporations help the working man or woman?

[optimator]

14. the Treasury Dept has a severe talent drain

and this fuck face Feinberg needs to get lost