Heavy pressure by financial institutions rescued in the crisis of 2008 and senior Treasury officials, helped to prevent cuts in salaries of CEOs of companies and they continued to earn millions in the years after the financial crisis. This information is revealed from a report published by the Head of Troubled Asset Relief Program (TARP),
According to the report: despite the official policy of TARP to limit the pay of CEOs and executives in companies that got extracted, such as Bank of America, Citigroup, General Motors, Chrysler and AIG,it did not happened. Instead, Kenneth Feinberg the person in charge of the salaries of TARP approved packages of annual salary of $ 5 million (!) and more to over 49 people between 2009 and 2011.
"Feinberg said that the companies put pressure on him to allow them to pay CEOs enough money to keep them from leaving," the report says. Similar pressures were applied by Treasury officials, who argued that higher salaries are needed to maintain the competitiveness of companies, which will expedite the returns of TARP funds.
Patricia Gaoggn from the Finance Ministry said in response to the report that the office actually cut the salaries of 25 CEOs that had the highest salaries. "Our office effectively limits salaries in the extracted 7 companies in which we had authority to do so", wrote Gaoggn.