WASHINGTON - The Obama administration's pay czar is limiting 2010 compensation for top executives at GMAC because the auto-finance giant continues to lose money and can't yet repay its $16.3-billion taxpayer bailout, people familiar with the negotiations told The Associated Press. Only one of the top 25 earners at GMAC will earn more than $500,000 in cash, and CEO Michael Carpenter will receive only stock compensation, said the people, who spoke on condition of anonymity because they were not authorized to discuss the talks. The agreements follow months of wrangling with Kenneth Feinberg, the Treasury Department's special master for executive compensation. They reflect his concern that GMAC has no plan to return to profitability. Feinberg is expected next week to announce 2010 pay packages for the top 25 earners at companies that continue to rely on "extraordinary assistance" from the government, including GMAC, American International Group, General Motors and Chrysler. Last year, Feinberg allowed two GMAC executives to exceed the $500,000 cash cap, and granted Carpenter an annual pay package worth $9.5 million. After becoming CEO in November, Carpenter earned about $1.2 million, including about $120,000 cash, for six weeks' work.
Pay Czar to Limit Top GMAC Execs' Compensation
More Industry

Auto Loan Outlook Shows Cracks
Recent survey data shows that the overall demand for auto loans is down, but the demand for subprime loans is up as consumers face economic uncertainty and affordability pressures.
Read More →
Lone Star State Store Sells
The Mitsubishi location moves from one Texas automotive group to another, continuing this year’s spate of brisk buy-sell activity.
Read More →
Mitsubishi Gallery Makes Progress
As part of its 2030 business plan, Mitsubishi's North America arm will soon open its first 'gallery' store in Tennessee, where customers can learn about the brand, vehicles and technology.
Read More →
Senators Propose Chinese Connected Car Ban
Just weeks before President Trump is set to meet with the Chinese president, two U.S. senators proposed a bill with the aim of protecting Americans’ data.
Read More →
Consumers Gravitate to Hybrids
A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.
Read More →
Bad Credit Tanks Attainability
A recent study suggests expectant parents are feeling the burden of bad credit more than other demographics when it comes to buying a new car.
Read More →
A New Consumer Culture in the Auto Dealership
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
New-Vehicle Sales Down
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
Will Extended-Range Autos Make Inroads?
EREVs, also known as ‘series hybrids,’ may catch on in the U.S., where they currently have barely a toehold, as automakers tilt away from some purely electric models and consumers crave more range.
Read More →
Used Autos Selling for More
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →