* Top paid AIG exec to earn $10.5 mln - Treasury letter
* Ally chief executive will earn $9.5 mln
* GM chief executive will earn $9 mln
(Adds details from letters, byline)
By Rachelle Younglai
WASHINGTON, April 1 Compensation packages for
the chief executives of bailed-out firms American International
Group (AIG.N), Ally Financial and General Motors (GM.N) will
not increase in 2011, the Treasury Department said late on
The Obama administration's pay czar has reviewed the
packages for the top 25 executives at the four remaining
companies that have received exceptional government assistance
and has found that overall, their cash compensation has
decreased 18.2 percent, treasury said.
To ensure that taxpayers were not rewarding executives at
companies that received the most government help, the law
required that their pay packages be subject to restrictions and
approved by Patricia Geoghegan, who is special master for
executive compensation for the Troubled Asset Relief Program.
The cash component of the pay packages for the CEOs of
Ally, GM and AIG is frozen at 2010 levels, Treasury said in a
statement. Chrysler's top 25 executives were also reviewed. But
since the auto maker is under management control of Italy's
Fiat SpA FIA.MI, its CEO is compensated by Fiat.
Geoghegan took issue with a few of the proposals. In a
letter to Ally Financial, she said that in certain cases the
proposed stock salary was not justified and must be reduced.
The top paid executive at Ally, CEO Michael Carpenter, will
make $9.5 million in 2011, according to the Treasury letter
that did not identify Carpenter by name.
AIG's top earner, CEO Bob Benmosche, will make $10.5
million, according to Treasury's letter to the insurer.
Geoghegan said that an AIG employee's cash salary should not
exceed $500,000 other than in "exceptional cases for good
The highest paid executive at GM, CEO Dan Akerson, will get
$9 million this year, according to Treasury's letter to the
Originally the pay czar oversaw seven companies, but
institutions such as Bank of America (BAC.N) and Citigroup
(C.N) were released from its jurisdiction after repaying
(Reporting by Rachelle Younglai; Editing by Jan Paschal and