”He’s receiving 950-thousand dollars and if over a period of 4 years this new CEO manages to improve the fortunes of the company he receives over $5 million dollars in stock, but it can not be redeemed for over 4 years,” explains Feinberg. "And the rest of the compensation requires the company repay the taxpayers for all that’s been borrowed."
Feinberg also approved up to $6.2 million for General Motors CFO Christopher Liddell and $600,000 annually for Chrysler CEO Sergio Marchionne for his service on the Chrysler board of directors.
Under new rules established earlier in the year, top executives at companies in need of government assistance, face caps on their compensation.
In addition, cash can make up only 45 percent of a person's pay. At least half of total compensation must be "long-term," and cannot be redeemed for at least three years. And all incentive pay must come from a pool whose size is based on earnings or another performance measure.
Fringe benefits like the use of private jets is limited to a value of $25,000 per year.
Find out what else the pay czar has to say about executive compensation. Watch the video above!
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Trader disclosure: On Dec. 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman Owns (GLNG); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (MSFT), (WMT), (GLNG); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (BAC), (EEM), (INTC), (POT); Najarian Owns (MS) & Short (MS) Calls; Najarian Owns (MGM); Najarian Owns (HK) Call Spread
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