Pay czar to probe execs at 419 bailed-out firms

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Government "pay czar" Kenneth Feinberg plans to investigate the pay of executives at 419 firms that took TARP money, according to a report by The Wall Street Journal on Monday.

Feinberg, the Treasury Department's special master for compensation, will review the bonuses, salaries and other compensation paid to execs at Goldman Sachs (GS, Fortune 500), JPMorgan Chase (JPM, Fortune 500), and other companies that received government bailout funds, to determine if any of that pay should be returned.

ken_feinberg3.03.jpg
TARP pay czar Kenneth Feinberg to investigate executive pay at 419 firms, The Wall Street Journal reports.

Feinberg will send a letter Tuesday to 419 bailed-out firms, seeking data on compensation paid to their top 25 executives, The Journal said. The inquiry only covers a small window of time, capturing the 2008 end-of-year bonus season at most big companies.

Feinberg can seek to renegotiate any payments he deems "not in the public interest." Firms that receive TARP money are subject to his pay decisions until their loans are repaid.

Representatives at Goldman Sachs and Morgan Stanley -- another firm that received TARP funds -- did not return CNNMoney's requests for comments.

A Treasury Department spokesperson would not comment on The Journal's report.

Feinberg told reporters at a conference last week that he would unveil his latest rulings about the 25 best-paid executives at five specific companies later this week. The five companies -- General Motors, Chrysler Group, GMAC, Chrysler Financial and AIG -- received "extraordinary" aid under the $700 billion bailout fund.

David Ellis, staff writer, contributed to this story. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,122.01 15.31 0.09%
Nasdaq 4,569.62 -1.02 -0.02%
S&P 500 2,000.12 0.10 0.00%
Treasuries 2.36 -0.03 -1.25%
Data as of 5:11am ET
Company Price Change % Change
Bank of America Corp... 16.20 -0.13 -0.80%
Apple Inc 102.13 1.24 1.23%
Facebook Inc 74.63 -1.33 -1.75%
Yahoo! Inc 38.18 0.39 1.03%
Pfizer Inc 29.49 0.28 0.96%
Data as of Aug 27

Sections

Staggering interest from the Chinese in an immigration program has led the U.S. to run out of available visas for the first time ever. More

Former Fed chief Ben Bernanke believes the 2008 financial crisis was the worst in global history, topping even the Great Depression. More

Snapchat has gotten a $20 million funding round from Kleiner Perkins, valuing the company at $10 billion, according to the Wall Street Journal. More

Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More

Five CNNMoney readers share stories about saving that you can learn from: What they would do differently if they had another chance. More

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.