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Compensation Czar Cuts Pay 15% at Bailed-Out Firms

HeadlineMar 24, 2010

The Obama administration has unveiled new curbs on executive compensation at some of the nation’s top bailed-out firms. On Tuesday, bailout pay czar Kenneth Feinberg reduced salaries and bonuses an average 15 percent for executives at five companies that have yet to repay their loans. Despite the cuts, many executives will still collect lucrative pay checks. At AIG, ten employees will take home at least $5 million apiece. Meanwhile, in Connecticut, Attorney General Richard Blumenthal has issued a legal opinion backing taxes on bonuses at bailed-out firms. On Tuesday, Blumenthal said a proposal to tax bonuses over $1 million is constitutional and would likely withstand a court challenge.

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