Coming nearly two weeks after an announcement that many of American International Group's executives
Patricia Geoghegan, the Acting Special Master for TARP Executive Compensation, released the 2011 compensation determinations for the “top 25” executives at the four remaining companies that received exceptional TARP assistance—AIG, Ally Financial, Chrysler and GM.
According to Geoghegan, while there will be some modifications in the mix of stock salary and long-term restricted stock for the CEOs, the cash component will remain frozen at 2010 levels.
Additionally, pay packages will follow the same framework that was established in 2009 and 2010. As a result, most pay (82% overall), including target incentives, is in the form of stock, thereby tying the ultimate value of the compensation to the company's performance.
As for the “top 25” executives, the Treasury said that some individual compensation packages increased, while some decreased and others remained at 2010 levels. Overall, the cash compensation for these executives decreased 18.2%, and their total direct compensation decreased 1.3% from 2010 levels.
The Treasury goes on to note that since the March 2010 “top 25” compensation rulings, the four companies have significantly improved their performance. The companies altogether have repaid an aggregate of more than $36 billion in TARP investments, including through the sale of company securities held by Treasury, and are on track to make significant additional taxpayer repayments in 2011, depending on market conditions.
As for AIG,
However, Kristian Moor, who late last week was demoted from the lead position at AIG's P&C arm Chartis after
The filing went on to state that Peter Hancock, head of finance and risk, received 120% of his incentive pay—$4.3 million—for less than 11 months of work. He received $2.4 million in stock and $1.5 million in cash for the year.