U.S. to Order Pay Cuts at Firms That Got Most Aid

By STEPHEN LABATON
http://www.nytimes.com/2009/10/22/business/22pay.html   Published: October 21, 2009

WASHINGTON — Responding to the furor over executive pay at companies bailed out with taxpayer money, the Obama administration will order the firms that received the most aid to slash compensation to their highest-paid employees, an official involved in the decision said on Wednesday. The plan, for the 25 top earners at seven companies that received exceptional help, will on average cut total compensation this year by about 50 percent. The companies are Citigroup, Bank of America, American International Group, General Motors, Chrysler and the financing arms of the two automakers...
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Citibank Announces New Executive
By Dr. Herbert Goodfellow
Published 10-25-09

In response to paycuts from 50% up to a reported 90% demanded by President Obama's "Pay Czar," several major companies are announcing new "low pay" executives.

Citigroup was the first to follow the lead of the Czar by hiring the lowest bidder to run the financial company employing over 300,000 employees. Lucious Pemmaster, recently released from Arkansas State (Penitentary) entered Citigroup's "How Little Salary Do You Need" contest to become Citigroup's new VP of Finance.  Some employees did voice some concern for their future job security.

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GM and AIG Follow Pay Cut Lead of Citigroup

When failing companies "too big to fail" were handed money without any responsibilities they did not expect to later have requirements added to the bailout.  Changing the terms of contract after the contract is made will be the subject of the new to be named "Ethics Czar" at some later date.

The new bailout contract terms demand that executive pay pass whatever the current "smell test" is posed by ABC, CBS, and NBC News (soon to be merged into ACN News) morning shows.  Citigroup was first to follow the lead by paying a reported $19,000 per year to its new VP of Finance.  General Motors and AIG today reported their new executives to meet the new contract bailout terms. Dingus L. Neettles (left) will serve as the new CEO of GM.  His son, Paul "Psycho" Nettles (right) will run AIG beginning next week.  Dingus and Paul were recruited based upon their winning postcards.  Both said the thought CEO pay in the US is "way too high" and that spending less on leadership is bound to help these huge companies rebound. 

Neither had any particular ideas to turn around these companies, but were sure that the savings in salaries alone would probably solve all the problems at GM and AIG.