The US Treasury's pay tsar has limited the amount hundreds of employees at major American companies including Citigroup and General Motors can be paid in cash to $500,000 (£300,000) a year as part of a series of new clampdowns.
Ken Feinberg, who was appointed by President Barack Obama to oversee compensation, yesterday set out a series of new limits for senior employees at the six companies most indebted to the US Treasury.
Having already imposed limits on the 25 highest paid employees at each company, he has now set out limits for the 26th to 100th best-paid staff at the six. Under the new rules, cash can only make up 45pc of a person's pay and at least half of total compensation has to be considered "long term" and taken in the form of long-dated shares and share options.
Mr Feinberg looked at dozens of requests from companies requesting staff should get more than $500,000 in cash, but he granted permission for only 12. The pay tzar admitted that some of these exemptions were granted to staff at AIG – following reports earlier this week that five senior staff were unhappy with their allotted compensation – but stressed that "it was not only AIG" that wanted its staff to get more.
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