WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC-Steep pay cuts coming at BofA, says government

Steep pay cuts coming at BofA, says government

CHARLOTTE, NC (WBTV) - The government is getting more involved than ever before in corporate pay decisions.

The Obama administration is slashing salaries in half at Bank of America, and six other firms that received big bailouts.

The top 25 executives at BofA will also watch many of their perks revoked, including chauffeured drivers, free country club memberships, and the use of corporate jets for personal travel. 

Salaries will drop by a whopping 90% on average.

The orders are coming from Kenneth Feinberg, The Treasury Department's special master for compensation.

Some analysts are worried about the implications. "Now that politicians have gotten a taste for trying to control the pay at some firms, what's to stop them from imposing those rules on everyone?" one asked today on CBS news.

But others say the mandated pay reductions are a just reflection of the times. After all, all the companies took a helping hand from Uncle Sam.

"Guys, uh, you have to understand you can't party on like its 2007," another CBS analyst said.

And while 25 execs at BofA will see their salaries drop from about $7 million to $700,000 dollars this year, just last week, more than half a million people filed new claims for jobless benefits.