Sunday, December 13, 2009

However, the government has made it clear that not to executive pay for various restrictions

American recipient executives will pay an average of five

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Guide language: Mr Obama government will request to accept the federal government aid most companies slash the highest paid employee salary. The plan will be carried out, and if the end is barack Obama for company executive compensation, take the bold step.

It is respectively: seven companies’ citigroup, bank of America, American international group, inc. (AIG), general motors, and after two autos Chrysler manufacturing enterprise financial subsidiary.

The New York Times to reveal this program officials and no salary will be affected by specific names. However, similar to that of the chief executive AIG traders may face strict restrictions. Salary, in addition, the highest income seven company’s executive’s privileges will face many restrictions.

The plan will be changed, the salary structure of these executives personal interest and the company's long-term financial health linked together. For example, the executive pay cash ratio of the average will be cut by 90%, and the rest of the years to replace the stock banning.

Although this plan will slash its executive compensation, much less than the ordinary income, but still allow these executives get millions of dollars.

In addition, this plan will directly affect those who have received the special assistance company, and those who have returned to the government aid.

Goldman sachs, Morgan Stanley, jpmorgan chase and have accepted such loans to the American government tens of billions of dollars, or loan assures because these companies have returned related loan, so the salary is not in the plan. Because of the financial market recovery, financial institutions profits, which is expected to rise this year 3 companies will be issued huge pay.

The plan by the Treasury Department is responsible for supervision by aid of the enterprise's salary problem Kenneth inspector general Kenneth Feinberg r. bloomberg (draft), will be released before the end of the month.

Is this plan will encounter resistance? Some of Mr 20 huck Finn executives said, speaking to his transfer recipient enterprise "consistent", namely the information they need to pay "competitive salary".

At present, accept special salvage seven companies pay top executives of 25 to get the compensation agreement, the inspector general's approval. He said 20, over the past four months, he always keep close contact with these enterprises, in the agreed salary "basic success".

The U.S. government is drafting a new industry and the guiding policy, in order to make compensation for the proper incentive executives to risk. However, the government has made it clear that not to executive pay for various restrictions, and will mainly through the modification company management regulations to determine the effects of executive pay. For example, the White House advice on issues in executive pay shareholders nonbinding voting, and increase the company's internal remuneration committee independence, forcing more salary information disclosed.
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