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June 05, 2009
White House Set to Appoint a Pay Czar
White House Set to Appoint a Pay Czar
The Obama administration plans to appoint a "Special Master for Compensation" to ensure that companies receiving federal bailout funds are abiding by executive-pay guidelines, according to people familiar with the matter.
The administration is expected to name Kenneth Feinberg, who oversaw the federal government's compensation fund for victims of the Sept. 11, 2001, terrorist attacks, to act as a pay czar for the Treasury Department, these people said.
Mr. Feinberg's appointment could be announced as early as next week, when the administration is expected to release executive-compensation guidelines for firms receiving aid from the $700 billion Troubled Asset Relief Program. Those companies, which include banks, insurers and auto makers, are subject to a host of compensation restrictions imposed by the Bush and Obama administrations and by Congress.
Wall Street has been anxiously awaiting more details on how the rules will be applied. "The law is confusing and a bit ambiguous, and so we're looking for certainty as to how to structure pay incentives," said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a trade association.
The move comes amid a series of sometimes-overlapping efforts to curb pay at financial firms following perceived industry excesses that led to the lending boom and bust.
The Obama administration earlier this year issued guidelines that include limiting salary for top executives at some firms receiving TARP funds and requiring that additional pay be in the form of restricted stock, vesting only after the company repays its debt, with interest, to the government. Congress then chimed in with even tougher rules curbing bonuses for top earners at firms receiving TARP money. As part of that effort, lawmakers barred those firms from paying top earners bonuses that equal more than a third of their total compensation.
The White House has been wrestling with how to marry those two efforts, which in combination are more punitive than administration officials had intended.
The government is also pursuing a separate revamping of financial-sector rules that could change industry compensation practices more broadly. For instance, the Federal Reserve is considering rules that would curb banks' ability to pay employees in a way that would threaten the "safety and soundness" of the bank.
Mr. Feinberg is expected to focus on pay restrictions related to firms receiving TARP bailout funds, helping companies to interpret the rules and ensure that they are being followed.
For instance, companies have been confused about whether to pay 2008 bonuses, since restrictions on incentive pay didn't go into effect until early 2009. Some firms have made the payments while others have held off. Many firms are also unsure whether the "top earners" targeted by Congress include rank-and-file employees or just executives.
Mr. Feinberg will report to Treasury Secretary Timothy Geithner, but he is expected to have wide discretion on how the rules should be interpreted. Firms likely won't be able to appeal decisions that Mr. Feinberg makes to Mr. Geithner, according to people familiar with the matter.
Mr. Feinberg, founder and managing partner of the law firm Feinberg Rozen LLP, spent several years overseeing payouts totaling more than $7 billion to victims of the 9/11 attacks. He personally reviewed every claim, approving or denying awards and allocating sums to be paid out of the Treasury.
Wild Thing's comment......
Unbelievable. Another day...another Czar! God save the Republic!
Why do we have a congress? Soon all the cabinet positions will have a czar, if they dont already.. non of them vetted, or approved by cogress, this is really getting scary......BIG Borther stuff.
"The Obama administration plans to appoint a "Special Master for Compensation" to ensure that companies "
“Master?” They even have to use the word “master???”
czar /zɑr, tsɑr/ Show Spelled Pronunciation [zahr, tsahr]
–noun
1. an emperor or king.
2. (often initial capital letter) the former emperor of Russia.
3. an autocratic ruler or leader.
4. any person exercising great authority or power in a particular field: a czar of industry.
"The law is confusing and a bit ambiguous, and so we’re looking for certainty as to how to structure pay incentives,” said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a trade association.
What law...these commies are making it up as they go.
.
....Thank you Mark for sending this to me.
Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67
Posted by Wild Thing at June 5, 2009 07:49 AM
Comments
I guess all these czar's are part of Osama Obama's job creation plan. He get's more sickening by the day, no by the hour.
Bob A.
Posted by: Bob A at June 5, 2009 09:07 AM
And if Socialized health care passes, he will have control over every aspect of our very lives! Is this the change everyone hoped for? Not me! I hope those village idiots who voted him in are proud of themselves. They're the ones who really screwed over the Nation. They didn't think before they went into the ballot box. Blindfolded lemings jumping off the cliff!
Posted by: Lynn at June 5, 2009 11:36 AM
Yea BobA, you're right. Unemployment will abate as obama gives everyone a government job and a title.
Feinberg will insure that bailout companies do not get the best management possible. The government will run their new possessions. Nationalization. obama has been a busy little socialist these first four months.
Posted by: TomR at June 5, 2009 12:08 PM
Since taxpayer money is used to build stadiums where NFL and MLB games are paid, why don't the have a czar to monitor how much football and baseball players get paid? I would also include NBA players in that mix. I don't see any difference since professional sports is dependent on taxpayer money for its facilities.
Posted by: BobF at June 5, 2009 02:50 PM
Bob A., he sure does. It is so unfitting
for them to use the word Czar it is just
not right and gives off a whole different
thing then just being the one in charge.
My guess is that is what Obama wants. He
wants us to be afraid.
Posted by: Wild Thing at June 5, 2009 08:14 PM
Lynn, DITTO all you said. I blame those
that voted for him along with Obama.
They better learn to listen up, read
about candidates.
Posted by: Wild Thing at June 5, 2009 08:16 PM
Tom, I am amazed at the speed he is doing
all of this.
Posted by: Wild Thing at June 5, 2009 08:22 PM
BobF., they might as well. Before
he gets done I bet the list will be long
of all the things he or our government
control.
Posted by: Wild Thing at June 5, 2009 08:24 PM
