(Adds details on executive compensation, background)
WASHINGTON, April 2 The Obama administration is
holding the total compensation unchanged this year for the head
of bailed-out auto lender Ally Financial, the
Treasury Department said on Wednesday.
"The CEO compensation package payable by Ally Financial has
not increased," the Treasury said in a statement, adding that
the overall amount of compensation for the company's chief
executive officer has been unchanged since 2010.
Michael Carpenter has been Ally Financial's CEO since 2009,
according to the company's website.
U.S. taxpayers bailed out Ally, along with much of the U.S.
financial and auto sectors, under a $700 billion program enacted
in 2008 to fight a financial crisis and recession. Ally and a
clutch of other firms had to agree to pay restrictions set by
Washington because they received outsized aid.
Over the last few years, the Treasury has sold shares in
most of the firms it bailed out. Taxpayers have recouped nearly
all of the $423 billion that was spent under the bailout, known
as the Troubled Asset Relief Program, or TARP.
Ally is the last firm with compensation packages set by the
administration, although the Treasury said last week it would
sell most of its remaining Ally shares.
The Treasury has been criticized in the past for alleged
laxity in pay restrictions on the company's executives. An
internal Treasury watchdog last year criticized the department's
authorization of pay hikes for executives at Ally and at General
Motors and AIG, which were also bailed out under
On Wednesday, the Treasury said it was keeping cash
compensation for Ally's top 25 executives unchanged. Most of
their compensation, however, is in stocks, which the Treasury
says makes their pay performance-based.
(Reporting by Jason Lange; Editing by James Dalgleish and Dan