Federal watchdog criticizes ‘excessive’ post-bailout pay for GM execs

A dispute has erupted between the US Treasury and a Troubled Asset Relief Program auditor who issued a report criticizing ‘excessive’ executive pay for General Motors executives while the company was receiving bailout funding.

TARP special inspector general Christy Romero issued a report that claims the Treasury department “significantly loosened executive pay limits resulting in excessive pay for the top 25 [GM and Ally Financial] executives.”

As the automaker’s leadership allegedly received growing rewards, “taxpayers were suffering billions of dollars of losses,” Romero added.

The Treasury has denied the allegations, arguing that the report included many “inaccuracies and omissions.” The department claims pay for top executives was restricted while the companies were receiving bailout funds, with compensation limits balanced against repayment considerations, according to a statement provided to Reuters.

The federal government earlier this year confirmed that taxpayers lost $11.2 billion on the GM bailout, approximately $1 billion more than the forecasted loss. The struggling automaker received approximately $50 billion in 2009, with the US government taking majority ownership after bankruptcy reorganization.