Cuts of as much as 90% to be announced say leaks
Kenneth Feinberg, the US's Treasury special paymaster, will cut the pay and bonuses of the 25 best-paid employees at the seven companies most indebted to the US Treasury, papers and agencies report.
On average, the total compensation of the 175 executives affected will fall by 50%. But basic cash salaries will see the biggest reductions, being cut by as much as 90%.
At AIG Financial Products, the London-based division which traded in the complex derivative products responsible for the insurer's near-collapse last September, no employee is expected to receive more than $200,000 in total compensation, with no shares or share options being granted, The Telegraph reports.
Doing what he was told to do
Reuters said White House spokesman Bill Burton, traveling with President Barack Obama in New Jersey, told reporters: "The president put Ken Feinberg in place in order to be an advocate for taxpayers and it appears that Mr Feinberg is doing what the president put him in place to do."
