U.S. Treasury failed to curb excess 2012 pay at GM, Ally, watchdog says
January 28, 2013
The U.S. Treasury Department "failed to rein in excessive pay" at bailed-out General Motors, Ally Financial Inc., and American International Group Inc., the rescue program's inspector general said.
Sixteen of the 69 top employees at the three companies had 2012 pay packages worth at least $5 million and all but one had total compensation of $1 million or more, the Special Inspector General for the Troubled Asset Relief Program said in a report today.
Since much of the compensation is in stock, only three of the executives had cash salaries of more than $1 million.
Despite previous warnings by the special inspector general that the Treasury "lacked robust criteria, policies and procedures" to curb excessive pay, the department "made no meaningful reform to its processes," according to the report.
The Treasury's decisions "were largely driven by the pay proposals" made by GM, Ally and AIG, according to the watchdog known by the acronym SIGTARP.
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