Salaries lowered by one-third for officials at four Michigan firms By David Shepardson The Detroit News Washington -- The Treasury Department's pay czar cut cash compensation for the top 25 executives at five firms -- including four Michigan-based auto industry companies -- by one-third for 2010. Overall compensation for the executives is down 15 percent over 2009 levels. Kenneth Feinberg, special master for compensation overseeing five firms that received extraordinary assistance under the $700 billion Troubled Asset Relief Program, announced the compensation packages for the top 25 executives at General Motors Co., Chrysler Group LLC, Chrysler Financial LLC, GMAC Inc. and AIG Inc. Feinberg defended the pay cuts, noting that 84 percent of the executives remain at the companies despite the salary reductions. All of the automakers praised his binding decisions. GM sought to pay 16 of its top 25 executives more than $500,000, but Feinberg only approved more than $500,000 for eight executives. Average cash salaries will be cut 7.5 percent for the top 25 GM execs; three will get cash pay raises; five will get no cash raise; and 14 will see cash pay cuts. GM spokeswoman Noreen Pratscher said the company supports Feinberg's decision 'and that GM's compensation is weighted toward long-term incentive and performance-based compensation.' Feinberg already has approved some pay increases. He has approved $9 million in compensation for GM chairman and CEO Edward Whitacre Jr. -- including $1.7 million in cash. Across town, Ford Motor Co. CEO Alan Mulally's compensation package totaled nearly $18 million, including stock options and grants, for 2009, according to the automaker. Unlike the other domestic automakers, Ford did not take a government bailout. Next month, Feinberg plans to announce the compensation structure for the next highest paid 75 executives at the firms. At Detroit lender GMAC, the new CEO, Michael Carpenter, will receive $8 million -- all in stock. And while none of the top 25 executives will make more than $500,000 in cash, 10 will make $500,000; all 25 will get at least 1.4 million in total compensation including stock. Overall cash was cut by 45 percent for the top 25 GMAC executives and long-term stock was cut by 14 percent. The amount of incentives for the top 25 employees was slashed from $29.5 million to $12.5 million. GMAC noted its CEO had voluntarily agreed to renegotiate his pay package -- after Feinberg already had signed off on it. Chrysler Group LLC's top 25 executives, whose pay was cut 18 percent last year, aren't seeing any reductions in cash salaries; just one employee is getting overall compensation of more than $1 million: $1.02 million. None of the Chrysler executives is earning more than $500,000 in cash, and just one is getting $500,000 in cash. The company won permission earlier this month to award additional long-term stock incentives. At Chrysler Financial, direct compensation will increase by 10 percent over 2009; the company had proposed a 20 percent increase. Only eight Chrysler Financial executives will make more than $500,000 in cash. Feinberg reiterated that Chrysler Financial is shutting down and therefore must pay all of the compensation in cash. The company is to shut down by the end of 2011. 