Report Faults U.S. Treasury for Excess 2012 Pay at General Motors


  • SIGTARP Report Picture

    SIGTARP Report Picture

    The U.S. Treasury "failed to rein in excessive pay" at General Motors and two other companies, a new report said. | January 29, 2013

Just the Facts:
  • A new report found that the U.S. Treasury Department "failed to rein in excessive pay" at GM and two other companies in 2012 following a government bailout.
  • Sixteen of the 69 top employees at General Motors, Ally Financial Inc. and American International Group Inc. received 2012 pay packages worth at least $5 million or more, the report said.
  • "In stark contrast, the 2011 median household income of U.S. taxpayers who fund these companies was approximately $50,000," the report said.

WASHINGTON — A disturbing new report by a government watchdog found that the U.S. Treasury Department "failed to rein in excessive pay" at General Motors and two other companies in 2012 following a government bailout.

Sixteen of the 69 top employees at General Motors, Ally Financial Inc. and American International Group Inc. received 2012 Treasury-approved pay packages worth at least $5 million or more, the report said. Ally is formerly General Motors Acceptance Corporation, Inc.

GM said it has complied with all TARP restrictions.

"In stark contrast, the 2011 median household income of U.S. taxpayers who fund these companies was approximately $50,000," the report said.

The report was published on Monday by the Special Inspector General for the Troubled Asset Relief Program or SIGTARP.

"SIGTARP found that once again, in 2012, Treasury failed to rein in excessive pay," the report said. "SIGTARP previously warned that Treasury lacked robust criteria, policies and procedures to ensure those guidelines are met. Treasury made no meaningful reform to its processes."

GM is expected to disclose final 2012 compensation levels for its top five executives this spring.

The report noted that "meaningful reform is still possible because GM and Ally" remain under the jurisdiction of the Office of the Special Master for TARP Executive Compensation.

The Treasury plans to sell its remaining shares in GM in the next 12 to 15 months and end its ownership in the automaker. GM received $50 billion in taxpayer money in a bailout that started in 2009.

"While historically the government has not been involved in pay decisions at private companies, one lesson of this financial crisis is that regulators should take an active role in monitoring and regulating factors that could contribute to another financial crisis, including executive compensation that encourages excessive risk taking," the report said.

Edmunds says: Not an encouraging report for taxpayers who are struggling to manage their own household budgets in hard times.

Leave a Comment
ADVERTISEMENT
ADVERTISEMENT

Marketplace

up2drive

Get Pre-Approved for a Loan


Car.com

Credit Problems?
We can help you get Financing!

ADVERTISEMENT
Have a question? We're here to help!
Chat*
Chat online with us
Email
Email us at help@edmunds.com
*Available daily 8AM-5PM Pacific
Phone*
Call us at 855-782-4711
SMS*
Text us at ED411