Bailed-Out Banks Act Before Announcement

Summary


WASHINGTON - Several firms that received large taxpayer bailouts have adjusted their executive compensation before the Obama administration's pay czar issues new rules. Some fear those rules will go too far, preventing them from attracting the talent they need to remain competitive.

Company officials and lobbyists say Bank of America Corp., Citigroup Inc., GMAC Financial Services Inc. and others are reworking their pay plans to ensure compensation reflects executive performance. They are giving executives more of their compensation in stock and stock options, and spreading pay over a longer period. And they are adopting plans to recapture some pay when bets go bad.

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Bailed-Out Banks Act Before Announcement

Kenneth Feinberg, the Treasury Department's special master for executive compensation, is expected by next week to announce compensation guidelines f...

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