Bailout likely to bring down pay

The New York Times reported last week on perquisites awarded to executives of U.S. banks that have received taxpayer bailouts.

Perks of the past?

Of 200 of the largest publicly traded banks that have received public money:

121 paid an average of $10,835 in country club dues for their chief executive in 2007.

147 spent an average of $20,668 on car and parking expenses.

36 owned corporate jets and typically allowed executives to use them for personal travel, at an average cost of $102,216

Fiscal restraint?

The Times quoted a report by Equilar, which analyzed 2008 proxy statements for banks on the Troubled Asset Relief Program. For example:

> Bank of America, which got $45 billion in government assistance, said last week that it will sell four aircraft, including a helicopter.

> Citigroup ended a consulting contract with former Chairman Sanford Weill that enabled him to use corporate jets, maintain a lavish office, and have a car and driver. Weill still gets a $1 million pension each year.

> Great Southern Bancorp. of Springfield, Mo., said it has sold off a lake house used by its chairman and is also seeking buyers for a bank-owned boat and a partner to split the use of its Cessna jet.

Pay limits for Nardelli?

The Washington Post reports today that Robert Nardelli, the former Home Depot CEO, may become the first executive to have his pay limited by law. Now the head of Chrysler Corp., Nardelli has applied for a $3 billion federal loan by March 31 to keep Chrysler afloat, the Post said. That’s on top of $4 billion in December. If the new loan goes through, Nardelli may find himself subject to President Barack Obama’s rule that CEOs whose companies accept federal assistance must limit their salaries to $500,000. Nardelli became a symbol of corporate excess when he was ousted by Home Depot in 2007 and walked away with a golden parachute worth $210 million.