Even before the Obama administration formally tightened executive compensation at bailed-out companies, the prospect of pay cuts had led some top employees to depart.
And now that Kenneth Feinberg has broke out the terrible swift sword, how does it look?
At Bank of America, for instance, only 14 of the 25 highly paid executives remained by the time Feinberg announced his decision. Under his plan, compensation for the most highly paid employees at the bank would be a maximum of $9.9 million. The bank had sought permission to pay as much as $21 million, according to Treasury Department documents.
At American International Group, only 13 people of the top 25 were still on hand for Feinberg's decision.
So much of the senior leadership of these firms leaves. And the government wants the firms to pay the TARP money back, even though they've made it more difficult by chasing away the people who would be best-positioned to get the money back. Good plan!