Top Executives at Bailed-Out Companies Keep Getting the Big Bucks, with a Wink from Treasury Dept.
By Noel Brinkerhoff | AllGov | January 30, 2013
Executives of corporations bailed out by the U.S. government received more than $6 million in raises last year, despite guidelines by the Department of the Treasury that are supposed to limit such salaries.
The Special Inspector General for the Troubled Assets Relief Program (SIGTAR) accused Treasury officials of ignoring the guidelines and approving raises sought by the companies.
An extra $6.2 million was awarded to just 18 employees at General Motors (GM), Ally Financial and American International Group (AIG), which received a total of more than $250 billion in bailout funds. This included a $1 million raise for the chief executive of an AIG division, Chartis, and $200,000 for an employee of Ally’s Residential Capital—which filed for bankruptcy only weeks later.
In 2012, the Office of the Special Master for TARP Executive Compensation approved pay packages of $3 million or more for 54% of the 69 top executives of AIG, GM and Ally.
Christy Romero, special inspector general for TARP, criticized the Treasury Department for not holding the line on executive compensation. “Treasury cannot look out for taxpayers’ interests if it continues to rely to a great extent on the pay proposed by companies that have historically pushed back on pay limits,” Romero said in her report (pdf).
She also accused Treasury of not making “meaningful reform to its processes.”
“Lacking criteria and an effective decision-making process, Treasury risks continuing to award executives of bailed-out companies excessive cash compensation without good cause,” she added.
Patricia Geoghegan, Treasury’s acting special master for compensation, rejected Romero’s conclusions, saying the audit was filled with inaccuracies and mischaracterizations of data provided to the inspector general.
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A New Era Of Mass Armies Approaches
BY IAN WELSH | SEPTEMBER 29, 2023
The army, or a part of it at the war college, has perked up and noticed some of the lessons of the Ukraine war, and that it’s a war that the US military could not fight. They’ve missed a lot of things, or felt they couldn’t/shouldn’t write about them, but they’ve figured some stuff out and written about them in a new report, “A Call to Action: Lessons from Ukraine for the Future Force” by Lieutenant Colonel Katie Crombe, and Professor John A. Nagle.
The entire thing is worth reading, but I’m going to pull out three of the main points. The first is that a volunteer US military can’t fight a real war.
The Russia-Ukraine War is exposing significant vulnerabilities in the Army’s strategic personnel depth and ability to withstand and replace casualties.11 Army theater medical planners may anticipate a sustained rate of roughly 3,600 casualties per day, ranging from those killed in action to those wounded in action or suffering disease or other non-battle injuries. With a 25 percent predicted replacement rate, the personnel system will require 800 new personnel each day. For context, the United States sustained about 50,000 casualties in two decades of fighting in Iraq and Afghanistan. In large-scale combat operations, the United States could experience that same number of casualties in two weeks. (emphasis mine)
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