“While taxpayers struggle to overcome the recent financial crisis and look to the U.S. government to put a lid on compensation for executives of firms whose missteps nearly crippled the U.S. financial system, the U.S. Department of the Treasury continues to allow excessive executive pay,” the [Inspector General's] report said.
In 2012, the pay czar acceded to company requests in approving multimillion-dollar pay packages and pay hikes for top executives at General Motors, AIG and Ally Financial.
The Special Master approved all 18 pay raises requested by the companies, for a total of $6.2 million, and approved pay packages of at least $1 million for 68 of the 69 employees at the companies it was overseeing, the report found.
The report also points to a case where the Treasury approved a $50,000 raise when the company’s reasoning was just that they wanted to “do a little extra for him.” The Treasury’s own rules say salaries should rarely top $500,000, but last year a third of top execs got more than that, a number that’s quadrupled since 2009.
Subscribe by email
Like this article? Sign up for our email updates and we’ll send you a regular digest of our newest stories, full of money saving tips and advice, free! We’ll also email you a PDF of Stacy Johnson’s ’205 Ways to Save Money’ as soon as you’ve subscribed. It’s full of great tips that’ll help you save a ton of extra cash. It doesn’t cost a dime, so why wait? Click here to sign up now.