Restrictions on top employee pay at seven companies getting extraordinary government assistance would lop $878.7 million from their compensation.
Documents filed by pay czar Kenneth Feinberg detailed how much compensation at each of the seven companies will be reduced for the 25 top-paid employees.
The company with the biggest reduction in compensation, in dollar terms, is GMAC Inc., the auto lender, where 2009 pay for the top 25 employees will be reduced by $413.3 million from last year's level.
This is an 85.6% decrease from 2008 compensation to the affected executives.
Feinberg, the special master for Troubled Asset Relief Program executive compensation, was charged with reviewing all forms of compensation for the 25 most senior and highly paid employees at the seven companies that have received exceptional aid from the Troubled Asset Relief Program.
In addition to GMAC, the seven are: American International Group Inc., Citigroup Inc., Bank of America Corp., General Motors Co., Chrysler Group LLC and Chrysler Financial.
The companies all have 30 days to ask the special master to reconsider his compensation determinations.
Compensation includes cash salary, stock salary and long-term restricted stock, according to the Feinberg reports. One factor in the reduced compensation is the departure of some employees, which counts toward reduced compensation.
GMAC didn't immediately return a phone call seeking comment.
At Citigroup, compensation of the top-paid 25 would be reduced in 2009 by $272 million from 2008 levels, the second-largest reduction among the seven companies. That would be a decline of nearly 70%.
The reduction includes the nearly $100 million in compensation Citi paid last year to Andrew Hall, the head of its Phibro LLC commodity trading unit.
Citi agreed to sell Phibro so Hall will not be paid a 2009 bonus by Citi.
A Citi spokesman said after the report was issued, "We are pleased this decision has been issued, and we will now work to comply with the plan's requirements."
At Bank of America, the pay restrictions will reduce compensation by $149 million, or 65.5%, from 2008 levels for the affected employees.
A Bank of America representative did not specifically address Feinberg's directives but said, "Our compensation practices have historically aligned pay with company performance and shareholder interests. … We have continued to work this year to further align our pay to performance," including enhanced "clawback provisions" at Bank of America's investment bank.
At AIG, compensation will be reduced by $28.4 million from 2008 levels for the affected employees, a decline of nearly 58%.
AIG had no immediate comment.
The company with the smallest reduction is Chrysler Group LLC,
Compensation for the affected employees will be reduced by $2.1 million this year, a 24% reduction.
Chrysler spokesman Michael Palese said, "We have no reason to dispute Treasury's numbers."
