A study released today found that executives at bailed-out companies are continuing to rip off the American public. A recent report from the Special Inspector General for TARP found that, in 2012, the TARP “pay czar” Patricia Geoghegan approved virtually all pay raises under her control, even when an executive’s division performed poorly. Even though his division of the bank was about to go bankrupt, an executive at Ally’s residential mortgage unit still saw his paycheck increase in 2012.
Geoghegan also approved a $50,000 pay increase for a GM executive whom GM wanted to “do a little extra for.” I guess 50,000 dollars seems like a “little extra” when it’s taxpayer money that you are spending instead of your own.
Is this how taxpayers want their money spent? By giving pay increases to people whose divisions are going bankrupt and to people who the company just wants to “do a little extra for?”
This needs to end. I think the report’s authors put it best when they said that the bailed-out companies demands for high executive pay show that they
“continue to lack an appreciation for their extraordinary situations and fail to view themselves through the lenses of companies substantially owned by the U.S. Government.”