In an interesting change of heart, Pres. Obama's "pay czar" has said he will consider revisiting the formulas he used to determine executive compensation at bailed out banks if they can show a mass exodus of talent as a result of the punitive measures.A Reuters reports said that Kenneth Feinberg is unaware of any employee departures tied to his rulings, where he slashed the compensation of top earners at rescued banks and auto companies last month.
"If I saw some mass exodus, which I do not anticipate, that would require me to rethink some of the basic assumptions that have entered into my determinations," Feinberg told Reuters.
Not one to dangle a carrot without waving a big stick, the "pay master" also told Reuters that if banks violate his rulings on compensation that they could be sued. So far, he hasn't had any formal appeals of his decision. The window for doing so closes in a few days, according to Reuters.
Feinberg's next task is to decide on the compensation of the next top 26 to 100 top earners at these firms. He also noted that he wouldn't be surprised if the pay rulings trickled further down the ranks.
"Compensation structures that these companies actually implement may, as far as they're concerned, involve officials and employees well beyond 100," he told Reuters.
For the entire article, see Pay Czar Flexible if Talent Flight.