High-paid executives at companies that received the largest government bailouts last year will see huge pay cuts ordered by the Obama administration, according to news reports.
The seven companies that received the most assistance will have to cut the annual salaries of their 25 highest-paid executives by an average of about 90 percent from last year, according to CNN and The Associated Press.
The Treasury Department will announce the deep pay cuts within the next few days, the AP reported, citing a person familiar with the matter.
The seven companies that received exceptional assistance from the government’s $700 billion financial bailout package are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial, according to reports from CNN and the AP.
At the financial products division of AIG, the giant insurance company which has received taxpayer assistance valued at more than $180 billion, no top executive will receive more than $200,000 in total compensation, the AP reported.
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