According to Feinberg, cash payments to the top 25 executives at each of the companies will be reduced by 33 percent compared to 2009 levels. Overall, the total 2010 compensation, including company stock, will also decline, the Washington Post reported.
As was to be expected, the executives did not take the news very well. Some of them complained that as a result of these decisions, the companies will lose top talent to competitors. Such a theory has been dismissed by the czar, who said some 80 percent of the execs who were with their respective companies in the past can still be found in their seats, despite the cuts.
Among the first to react to the decision was American manufacturer Chrysler, who issued a press statement neither thanking nor blasting Feinberg.
"The 2010 submission for the Top 25 executives not only complies with all of the Special Master guidelines but also provides for an overall competitive compensation package that clearly aligns compensation components with the performance of the Company. All Chrysler employees have the same goal: to build great products and return our company to profitability."
"Chrysler Group will continue to respect the privacy of our employees by maintaining the confidentiality of individual compensation information."
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