(Drops word "more" as modifier for "flexible" in first
WASHINGTON, April 8 The U.S. pay czar will
allow bailed-out firms American International Group (AIG.N),
Ally Financial and General Motors (GM.N) to be flexible with
their compensation packages for certain high-paid employees,
according to letters released on Friday.
The Obama administration's pay czar must give her stamp of
approval on pay packages for the top 100 earners at the four
remaining companies that have received exceptional government
assistance from the $700 billion Troubled Asset Relief
Patricia Geoghegan, TARP's special master for executive
compensation, already reviewed the pay packages for the top 25
executives at the bailed-out firms. According to Friday's
letters, the compensation structure for the next 75 highly paid
employees was approved with minor modifications.
A significant portion of compensation must be based on
performance in order to win Geoghegan's blessing.
Under the law, pay packages are subject to restrictions and
must be approved by Geoghegan to ensure that taxpayers are not
excessively rewarding executives at companies that received the
most government help.
(Reporting by Rachelle Younglai; Editing by Dan Grebler)