Mr. Feinberg can't rip up
Posted by ptenjoy on Tuesday, July 28, 2009
Mr. Feinberg can't rip up legal contracts. But he is expected to push firms and employees to renegotiate payments he deems too high, said people familiar with the Treasury's plans. If that can't be done, they said, Mr. Feinberg is expected to factor the amount of a contract into an employee's overall pay and use that calculation to bring down total compensation. For instance, if an employee were legallyed hardy guaranteed a $1 million bonus for 2009, Mr. Feinberg might subtract that amount from the employee's 2009 base salary, or cut the employee's future pay to compensate for that amount. One of the first tests facing him Mr. Feinberg is what to do if Citigroup seeks to honor its profit-sharing contract with a top energy trader, Andrew J. Hall, that could pay out as much as $100 million for 2009. Mr. Hall, head of Citigroup's energy-trading unit, Phibro LLC, and Citi are ed hardyin talks about a possible divestment of Phibro, as previously reported. If that deal happens, the question of Mr. Hall's pay might be moot. It is unclear how Mr. Feinberg would rule on Mr. Hall's case. Citigroup hasn't yet submitted his or any other employee's compensation package for review. If Mr. Feinberg deems Mr. Hall's pay excessive, he would likely try to get Citigroup to lower the amount. If that isn't possible, Mr. Feinberg might apply that $100 million towards Mr. Hall's future earnings. "Companies will need to convince Mr. Feinberg ed hardy dressesthat they have struck the right balance to discourage excessive risk-taking and reward performance for their top executives," said Andrew Williams, a Treasury Department spokesman. A Citigroup spokeswoman said: "Citi continues to examine ways to ensure its employee-compensation practices are competitive in this very challenging market environment." A spokesman for GM said the company "has every ed hardy swimwearintention of complying" with the government's executive-pay guidelines. A GMAC spokeswoman said, "Attracting and retaining key talent is critical toward continuing our efforts to transform the company and restore profitability." A spokeswoman for Chrysler Financial said, "We continue to work with Special Master, Kenneth R. Feinberg, on corporate executive compensation, to seek advice anded hardy tanks input with regard to our compensation plans." A GMAC spokeswoman said, "Attracting and retaining key talent is critical toward continuing our efforts to transform the company and restore profitability."
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