Kenneth Feinberg, who is responsible for approving pay packages for executives at TARP-recipient companies, said he is “extremely reluctant” to invalidate employment contracts, according to CNNMoney. At the National Association of Corporate Directors’ conference held in Washington, Feinberg indicated that he had to consider how his compensation rulings affect the ability of these seven firms to attract and retain talent. “Everyone is interested in hearing the ‘blueprint’ and guidelines that he is setting for these large companies,” said Susan O’Donnell, managing director at compensation consultancy Pearl Meyer & Partners. Firms such as Citigroup and Bank of America have already struggled to prevent some of their top talent from leaving their firms to join rivals’ teams. General Motors is experiencing difficulty in finding a replacement for its CFO Ray Young due to Feinberg’s unwillingness to allow the company to pay a salary more than $1 million.
Feinberg: ‘Reluctant’ to Invalidate Contracts
Kenneth Feinberg described his reluctance to toss out companies’ current pay practices while at a National Association of Corporate Directors conference in Washington.
October 21, 2009