A special inspector general has reported that the US Treasury allowed last year top officials within General Motors and Ally Financial to be awarded “excessive pay.”
The issue would not be one to be of concern for the Treasury, but last year the two companies were still part of the much-debated taxpayer-funded government bailout program.
“Treasury significantly loosened executive pay limits resulting in excessive pay for (the) top 25 executives” at GM and Ally while “taxpayers were suffering billions of dollars of losses,” claims the report signed by Christy Romero, special inspector general for the US Troubled Asset Relief Program.
On the other hand, the Treasury said the report had “many inaccuracies and omissions,” and that the US department was careful in balancing limits “with allowing companies to repay taxpayer assistance.”
The Troubled Asset Relief Program, known as TARP rescued back in 2009 the No. 1 US automaker, funding a $49.5-billion bailout program. At the end of 2013, when the Treasury sold the remainder of GM shares, concluded that the taxpayers lost no less than $11.2 billion.
Dan Akerson, the GM Chief Executive that guided the company after the 2009 bankruptcy was paid $9 million in cash and stock in 2013, while then executive vice president Mary Barra was awarded $5.3 million in cash and stock for the year.