Registered: 1421395189 Posts: 2
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When numerous very 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 executive compensation. A business that unsuccessful miserably and wanted Troubled Asset Relief Program help shouldn't be lining already lined pockets. However, a brand new report has found executive payment barely dipped even while a number of organizations, such as GM, AIG and Ally Financial, were receiving TARP funding. Resource for this article:
why wouldn't you look at https://personalmoneynetwork.com/? Paychecks always big as an executive A number of people were upset when the TARP was put into place. In fact, the American public at large did not like the idea. There were a ton of large companies which were “bailed out” by taxpayers, and the government promised to pay the damages regardless of the fact that the corporations were largely responsible for the downturn in the economy. Many were especially upset that executive bonuses were still in play in spite of the belief that they were being paid for by taxpayers. However, it has come to light that the Treasury Department didn't have much of a problem with extravagant exec payment, less a few scapegoats. According to the Wall Street Journal, it has been discovered that almost 40 exec compensation packages of $3 million or more were directly approved by the government's accounting division, of which 16 received $5 million or more in 2012. Capped salaries with variances The treasury had to release a report about the compensation packages approved. There has been a lot 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 organizations that got Troubled Asset Relief Program funds. A lot of executive compensation raises were seen at GM, Ally Financial and some other industries which were getting the most criticism. Between 2007 and 2012, the TARP program required that wages were capped for most professionals. There were variances allowed as part of this though. Setting a limit Corporations that used TARP had a $450,000 limit of cash in executive payment packages originally. There were sixteen employees that got $5 million bonuses in 2012 though including some at Ally, American International Group, and GM. Top executives still got a lot of cash even if they did not breach the barrier, according to the Washington Post. About $450,000 in cash was given to them, which is still 10 times the national median household income. Dan Akerson, CEO of General Motors received $1.7 million in cash and $7.3 million worth of stock in 2012. Patricia Geoghegan signed off on a total of $6.2 million in raises for the top 16 employees. Losing executives due to pay Many people suspect that the businesses are getting larger pay packages for executives to be able to keep them from leaving and going to many businesses. This is in accurate though, according to Geoghegan. Sources Washington Post USA Today Wall Street Journal
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The Special Inspector General for TARP, Christy Romero, as of late discharged a report specifying endorsed pay bundles that were accepted specifically by the Treasury
my assignment help. Substantial feedback is being leveled at Patricia Geoghegan, the individual appointed to direct rewards and compensations at firms that got TARP resources.