No Pay Raises For The "Top 25"

No pay raises for  the “top 25” executives of the two remaining companies that received “exceptional” Troubled Asset Relief Program (TARP) assistance, General Motors and Ally Financial, formerly GMAC.
The Acting Special Master for TARP Executive Compensation, Patricia Geoghegan, issued that ruling April 26, 2013.

According to a statement that was issued to explain that ruling:

“The cash compensation for the top 25 executives at the two companies has not increased from 2012 levels.  Moreover, for 2013, cash salaries for the top 25 executives at the two companies as a group are on average four percent below the median for cash salaries and 56 percent below the median for total cash compensation for similar positions at similar companies. 

Compensation continues to be predominantly in stock and therefore performance-based:  All but one of the pay packages approved in 2013 contain a majority of stock compensation (rather than cash).  Transferability of the stock remains subject to deferral generally over a period of three years, and hedging of the stock compensation remains prohibited.  Bonuses are subject to clawback if they were based on materially inaccurate financial statements or other materially inaccurate performance metrics.
OSM continues to limit total direct compensation:
GM’s average pay packages for its top 25 employees for 2013 do not exceed the 50th percentile compared to similar positions at similar companies.
Ally Financial’s average pay packages for its top 25 employees for 2013 are mid-way between the 50th and the 75th percentiles compared to similar positions at similar companies.”

GM and Ally have been paying back TARP money. The statement released April 26 also shows that General Motors has repayed approximately $30 billion of the nearly $50 billion that was invested in GM.
Treasury Department officials said in December 2012 that the U.S. should be out of the GM offices within the next 12-15 months
Ally Financial has paid back about one-third of the U.S. government’s $17.2 billion investment in TARP money.

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