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General Motors and Chrysler bosses are to be hit by significant wage cuts as part of measures to cut upper management wages at companies bailed out by the US government.
While big wigs at Chrysler Financial will see their stock compensation package hit by a 56 per cent decrease, GMAC executives will have around 85 per cent of their wages cut from their weekly paychecks.
The US manufacturers are among seven bailed out firms subject to the sweeping cuts, which will reduce pay-outs to more than 170 top execs.
Chrysler CEO Sergio Marchionne was not affected by the action taken by the Obama administration, however, as the head of Fiat took no money from Chrysler for 2009.
And despite the pay cuts, GM CEO Fritz Henderson may receive an increase in pay. Henderson stands to earn cash and stock compensation up to $5.5 million (£3.3m), much higher than his 2008 salary, but $2m (£1.2m) less than his 2007 deal.
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