Intermarkets' Privacy Policy
Support
« Today's Historic Demand For Guns. Who's Buying? | Main | Parody Website Shows Obama "Doing Skeet;" TNR Links It As Real, and Resolving the Issue In Obama's Favor »
January 29, 2013

Shock: Treasury Department Approved "Excessive" Pay Raises, Salaries at Bailed-Out Companies

The executives had run GM and AIG so well that they had to come begging to the government for billions in subsidies and direct gifts.

So of course they should have massive million-dollar raises.

And of course Timothy Geithner's Treasury Department should approve those raises.

Ggovernment report Monday criticized the U.S. Treasury Department for approving “excessive” salaries and raises at firms that received taxpayer-funded bailouts during the financial crisis.

The Special Inspector General for the Troubled Asset Relief Program said Treasury approved all 18 requests it received last year to raise pay for executives at American International Group Inc., General Motors Corp. and Ally Financial Inc. Of those requests, 14 were for $100,000 or more; the largest raise was $1 million.

Treasury also allowed pay packages totaling $5 million or more for nearly a quarter of the executives at those firms, the report says.

....

The report says Treasury bypassed rules under the 2008 bailout that limited pay. Treasury approved raises that exceeded pay limits and in some cases failed to link compensation to performance, it notes.

The rules stated that executives at bailed-out companies could not receive pay higher than the fiftieth percentile of CEO's in non-bailed out companies (that is, they could not be paid as if they were in the top half of executives).

But most executives in bailed-out companies -- 63% -- received pay at or above that level.

The woman who approved these pay rates called the rule a mere "benchmark."

Consider the fact that incentives and disincentives matter, and control behavior. Consider the fact that Treasury is now approving CEO payments in the top half of all executive compensation for executives at companies the taxpayers bailed out.

So what would be the incentive and disincentive structure here, as regards getting government bail-outs? There is hardly any disincentive for an executive to lobby the government for bail-outs and for a fusion of his company with the government -- he can still get paid what the top half of non-balled-out executives are paid.

It's an advertisement for corporatism, isn't it?

There's a process by which "accident" becomes so close to deliberate intent it's almost not worth arguing about the semantics of it. Plainly, Timothy Geithner thinks that corporate welfare, like the regular sort of individual welfare, is nothing to be ashamed about taking, and not the sort of thing we should penalize people for taking.

As with individual welfare, corporations should be encouraged to apply for government benefits, for those times when, goshdarnit, they just can't quite make ends meet.

Sometimes we just need to give an executive at a bailed-out company an extra million dollars per year just to make sure he has heating and food. And birth control, probably.

Compassion (TM). Try it!


digg this
posted by Ace at 01:04 PM

| Access Comments




Recent Comments
garrett: "[I]NYC Ewok has two more reasons to hole up in his ..."

MSM Presstitute: ""[i]and media figures.[/i]"!!! What did we do t ..."

sven10077: "191 ---, It's a LOT like why we monitor you win ..."

HoboJerk, Re-branded: "I STILL want to know why DHS people are dealing wi ..."

Carol: "MisHum, Police shot & killed him. I'm sure he tho ..."

Guy Mohawk: "So any comment from fat ass ebola czar yet?You can ..."

Dack Thrombosis: "I think it's time to discuss the growing threat of ..."

Gary Johnston: "185 There is a tea party member named Mohamed Moha ..."

Kreplach: "@156 Don't forget the other idiot that went on ..."

Jenny Hates Her Phone: "Of course this does mean our favorite NYC Ewok has ..."

Jen: "http://tinyurl.com/mqr77p8 ..."

Doctor Fish: "A time will come when ordinary American's begin to ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64