Bonus time is fast approaching in some of America’s biggest companies and that means the government’s pay czar is about ready to do his job but some are saying he’s walking a difficult tightrope. Although his job is to safeguard abuses of government money that was spent to shore up some companies, the worry is for at least seven companies that top executives will get up and leave.
Kenneth Feinberg is the man the government has given this tall order too. This isn’t the first time he has been axing the kind of money the top executives get at the firms in question. In October, Feinberg cut the bonuses that these executives would receive by about half and transferred much of the payments they received into stock options that were performance-based.
The problem is that some of these executives have threatened to leave the already troubled firms if further cutbacks go through. This is a situation that Feinberg says that he is acutely aware of. A form last week in Washington that dealt with the matter, Feinberg said that he was very aware of the situation and would look at competitive solutions.