A U.S. Treasury official overseeing compensation at firms that got big federal bailouts may renegotiate pay packages that he thinks are too generous, the Wall Street Journal reported on its website on Sunday.
The official, Kenneth Feinberg, is expected to press firms and employees to rework contracts that are too high, the paper said. If that does not happen, he may reduce compensation in other ways, including future pay, the paper said.
The paper said seven firms have to submit proposals for their compensation packages by August 13. These are Citigroup Inc
GMAC has proposed that it pay its top employees a mix of 20 percent cash and 80 percent stock, the paper said.
Companies will need to convince Mr. Feinberg that they have struck the right balance to discourage excessive risk-taking and reward performance for their top executives, the paper cited Treasury spokesman Andrew Williams as saying.
(Reporting by Paritosh Bansal; Editing by Christian Wiessner)