How Will They Manage?

The nations uproar about the financial sectors exorbitant pay and bonuses for their executives despite funding those incentives with taxpayer money has finally elicited a response. The most egregious offenders Citigroup, AIG, Bank of America, General Motors, Chrysler and the two automakers’ financing arms have exhibited a flagrant disregard for humility, decorum, and discretion — not to mention common sense. In response Kenneth Feinberg, the special master at the Treasury, who has been charged with overseeing compensation issues, is expected to order the companies to slash compensations for their top 25 highest paid employees.

Feinberg has been in negotiations with the companies for months, and has already exerted some influence, as hollow as it may be. Prime example being outgoing Band of America CEO Kenneth Lewis, who at Feinberg’s urging has announced to forgo his salary for 2009. Shortly following his announcement came news of Lewis’ $53.2 million pension. Adding insult to insult upon injury, according to filings, Lewis cleared $63 million over the last year while steering the banking giant into the ground, including $10.8 million in salary, stock and options for 2008.  Feinberg and the White House claim these new pay restrictions will be enforced.  Their plan is impressive, cutting the salaries by an average of 50%.

Neil Barofsky, the special inspector general for the Troubled Assets Relief Program, told Wolf Blitzer on CNN’s Situation Room, there is even more reason for the backlash from the White House. According to Barofsky these companies have already been taking federal money from other programs in addition to the TARP bailout. All total the financial sector has grabbed over $3 TRILLION of the taxpayers money since the sectors cry for help.

Most Americans appeared to take the bailout fairly silently because there wasn’t much of a choice. Pundits from both sides of the isle told the people that the disaster looming would be catastrophic. What is clear to everyone, but these large companies and their proponents, is that they gave the money to the wrong people. The money was meant to stimulate lending, putting desperately needed stimulus into the American peoples pockets, not those who so incompetently drove their companies to the verge of collapse.