Business

O’S WATCHDOG SNIFFING OUT RICH PAY PACKAGES

Six weeks into his tenure as President Obama’s compensation czar, Kenneth Feinberg has his sights set on pay packages he thinks are too rich for companies propped up by Uncle Sam.

He is expected to seek changes to guaranteed pay plans or at least to restructure future compensation packages when existing deals can’t be broken.

This comes amid public and political frustration at fat paychecks at firms like Bank of America, American International Group, and Citigroup, all of which got billions in government aid to avoid collapse.

Just last week, the spotlight hit Citi energy trader Andrew Hall, whose profit-sharing deal could net him up to $100 million.

Feinberg, a lawyer who used to be in charge of awarding compensation to 9/11 victims, has asked the seven firms that have accepted substantial federal capital injections to submit pay-package plans by Aug. 13, The Wall Street Journal reported online last night.

Appointed in June, he must review the 100 highest-paid execs at Citi, BofA, AIG, General Motors, Chrysler, Chrysler Financial and GMAC Financial Services, a task requiring a delicate touch. And while fueled by public outrage, he must make sure to keep the compensation attractive enough to retain top talent.

Because he can’t rip up contracts, he’ll likely press firms and executives to renegotiate terms. If that comes up short, he may subtract guaranteed pay from base salaries or the amount in question from future pay.