You can now read 10 articles each month for free on BostonGlobe.com.

The Boston Globe

Business

Watchdog says pay guidelines ignored

But criticized TARP official blasts report

WASHINGTON — The Treasury Department ignored its own guidelines on executive pay at firms that received taxpayer bailouts and last year approved compensation packages of more than $3 million for the senior ranks at General Motors, Ally Financial, and American International Group, according to a watchdog report released Monday.

The report from the special inspector general for the Troubled Asset Relief Program said the government’s pay czar signed off on $6.2 million in raises for 18 employees at the three companies. The chief executive of a division of AIG received a $1 million raise, while an executive at GM’s troubled European unit was give a $100,000 raise. In one instance, an employee of AIG’s Residential Capital was awarded a $200,000 pay increase weeks before the subsidiary filed for bankruptcy.

Loading comments...

You have reached the limit of 10 free articles a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than $1 a week