the Detroit Free Press:
  • The new Chrysler-Fiat partnership will get around U.S. restrictions on executive pay by having its top officers deemed Fiat employees.

    The new Chrysler is among the first companies to fall under rules outlined in February by Treasury Secretary Timothy Geithner, for companies getting "extraordinary assistance" from the Treasury that would cap pay for top executives at $500,000, excluding restricted shares of stock. The final rules for the limits have not been released. . . .

    Fiat CEO Sergio Marchionne has already indicated he will replace Chrysler CEO Bob Nardelli. But under the deal, any of Chrysler's top officers can be deemed a Fiat employee who's "seconded" to Chrysler, and therefore take pay from Fiat beyond any Treasury cap.


Oh, this just better by the day, doesn't it?

I'm not in favor of caps in the first place. However, it makes no sense whatsoever that the Obama administration would create the cap and THEN broker a deal that exempts bailout recipients in this case from that cap.

MEM, seriously, do you still think this deal is anything but an abomination?