Bank of America dodges a bullet

Days after the nation's largest lender repaid its TARP money, the government's pay czar will unveil another round of curbs for top employees at bailed out companies.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com staff reporter

ken_feinberg3.03.jpg
White House "pay czar" Kenneth Feinberg will announce additional compensation curbs for employees of bailed out companies Friday.

NEW YORK (CNNMoney.com) -- The Obama administration's pay czar will outline Friday another round of curbs on executive compensation for companies that took exceptional assistance from the government, but Bank of America won't be one of them.

BofA had been one of the seven companies under the purview of Kenneth Feinberg, the Treasury Department's special master for executive compensation, who is charged with determining appropriate pay packages for the top 100 employees at the most heavily bailed out companies.

But the nation's largest lender announced Wednesday that it had sent a check to the government to repay the $45 billion in aid it had received from the Troubled Asset Relief Program (TARP).

A Treasury Department official confirmed Thursday that BofA is no longer subject to the special master's authority.

That leaves Feinberg with six other companies to oversee, including: AIG (AIG, Fortune 500), Citigroup (C, Fortune 500), General Motors, Chrysler, Chrysler Financial and GMAC.

In October, the pay czar cut total compensation for the top 25 executives at the seven firms by about half, scaling back salaries by 90% and transferring bonus payments into performance-based, longer-term stock options.

On Friday, Feinberg will present his determinations for the pay structures of the next 75.

Since most executives take home a majority of their annual pay in the form of end-of-year bonus checks, adjusting pay packages so late in the year will likely have a sizeable impact on employees' 2009 pay. And as executives get their pay trimmed, the affected companies are raising concerns that top talent will walk out the door.

Some of the firms have said they are already on the brink and can't afford to lose their key employees. That's something Feinberg says he is acutely aware of.

-- CNNMoney.com staff writer David Goldman contributed to this report.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
2015 Mustang's asphalt-peeling power goes modern The new Ford Mustang has been upgraded and updated to compete globally - but never fear, it's still a monster. More
15 top executives with $1 salaries Some CEOs and founders agree to salaries of just $1 a year. But once goodies like bonuses and stock options are added in, some of those executives end up taking home many millions of dollars a year. More
Mercedes SL65 AMG: 621 horses of topless power Turn heads as you blow by traffic in this roadster convertible from Mercedes. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.