Treasury freezes pay for CEOs at Ally Financial, GM, AIG

The chief executives of General Motors , AIG, and Ally Financial had their 2012 compensation packages frozen for a second year in a row by the Treasury Department after they got “exceptional” bailout help during the financial crisis.
The Treasury said on Friday that all three were making progress at repaying the taxpayer funds given to them to keep them from collapsing during the 2007-2009 financial crisis but their pay practices remain under scrutiny of a “special master” until they do pay it back.
The top executives get a mix of cash, stock and stock options that together make up their overall pay packets.
“Although there has been some modification in the mix of stock, salary and long-term restricted stock for the CEO group, the overall amount of CEO compensation is frozen at 2011 levels,” Treasury said.
The government pumped $68 billion into AIG from the Troubled Asset Relief Program, or TARP, and invested $50 billion in GM and $17 billion in Ally Financial to save them from collapse during the 2007-2009 crisis.
The Treasury also said total direct compensation during 2012 for 69 other senior executives at the three firms was being cut by 10 percent from 2011 levels.
The three were part of group of seven firms that got so-called exceptional assistance in the form of taxpayer-financed bailouts during the financial crisis. Four of the original seven — Bank of America, Citigroup, Chrysler Financial and Chrysler — have already repaid their TARP money and left the program.

Source: Reuters