The Corner

RE: ‘Feinberg’s Folly’

E-mail:

Rich,

As usual, the Obama administration over-steps its bounds. The government has majority ownership in AIG and GM, so I guess they can call the shots there.

Approximate government ownership percentages:

AIG: 80

BoA: 40

Citi: 34

GM: 60

GMAC: 35

Chrysler: 10

Chrysler Finance: I couldn’t find quickly

But isn’t it the role of the Board of Directors to set executive compensation? Why would they not call a Board of Directors meeting and put the compensation packages to a vote of the shareholders (Hint: they may lose the vote)….

Another:

Mr. Lowry,

Every time the extremely high pay given to the various executives of the financial industry is criticized and then later reduced, there is a corresponding reduced amount of tax revenue that does not get to the various government entities.  The governor of New York was recently lamenting that very issue.

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