Compensation for chief executives at AIG, Ally Financial and GM -- all of which received exceptional TARP assistance during the financial meltdown -- is being frozen at last year's levels, the Treasury Department said.
This year, 83% of the compensation given to the 25 top-paid executives at each company will be in the form of stock, which is tied to company performance, the Treasury Department said. Bonuses will be subject to claw-backs. Cash salaries are largely limited to $500,000 or less.
Overall direct compensation, according to the ruling, will be down 10%.
The Congressional Budget Office estimated in December that TARP losses will amount to $34 billion, while the Obama administration projects a $68-billion loss.
At GM, total direct compensation for the top 23 executives will decline $8.8 million, or 12%, from 2011, the Treasury Department said. The highest-paid employee, identified only by a number in the report, will pull in $9 million this year through a cash-and-stock-based salary and long-term restricted stock.
At Ally, overall direct compensation will fall 3.3%, or $2.6 million, while the top-paid employee will earn $9.5 million. At AIG, direct compensation will slip 12.2%, or $14.8 million, with $10.5 million going to the top earner.
By comparison, Morgan Stanley Chief Executive James Gorman made $13 million last year after taking a 15% pay cut. Bank of America's head, Brian Moynihan, watched his compensation package quadruple to nearly $8.1 million.