Kenneth Feinberg, the Obama administration’s special master of compensation, expects negative feedback to follow his first round of compensation decisions, reports Reuters. “I’m not sure there will be any type of result here that is going to be praised …,” said Feinberg, who appeared via teleconference to a Chicago Bar Association event. “Likely, I’ll be criticized from both ends.” Feinberg indicated that he has been frequently meeting with Citigroup, Bank of America, and American International Group as he finalizes his first batch of compensation rulings. Feinberg said that those discussions continue to be productive and he hopes he will not have to impse pay curbs over the objections from the companies involved. After his initial decision whether to approve or disapprove pay contracts, the companies will have 30 days to ask him to reconsider, after which Feinberg has 30 days to make a final determination. After he completes his pay review for the companies’ top 25 employees, he will move on to approve compensation structures in place for the next 75 highest-paid employees.
Feinberg Expects Fallout From Compensation Decisions
Kenneth Feinberg told the Chicago Bar Association that he expects some backlash after he makes his decision on the pay packages for Citigroup, AIG, and Bank of America.
September 30, 2009