Kenneth Feinberg, the Obama administration's pay czar, slashed executive pay at American International Group Inc. [AIG] and four other U.S. firms that still depend on government funds, claiming that the clampdowns are not resulting in talent leaving their posts.
Feinberg, a Washington lawyer who was appointed by President Obama to oversee pay at firms receiving taxpayer bailouts, cut 2010 pay for the highest-paid employees at those firms by an average of 15%, compared with 2009. Cash pay was cut 33% on average, the Treasury Department said. Feinberg is in charge of setting the pay packages for the 25 top earners at the five firms that received "exceptional assistance" from the government's $700 billion Troubled Asset Relief Program (TARP) and have not yet substantially repaid the funds.
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