Pay Czar

DEFINITION of 'Pay Czar'

The nickname given to "Special Master for Compensation" Kenneth Feinberg. The term "pay czar" was applied to Feinberg following his appointment by the U.S. Treasury Department to monitor compensation awards to executives of the firms that accepted U.S. TARP funds during the 2008-2009 financial crisis.

BREAKING DOWN 'Pay Czar'

Following the disbursal of TARP funds to some of the country's largest financial institutions and businesses, many in the media and general public grew angry over the exorbitant bonuses being given to the executives of these bailed-out institutions. Subsequently, the position of Special Master for Compensation was created to regulate such awards.

RELATED TERMS
  1. Pay Czar Clause

    A buzz word describing a clause found in financial institutions' ...
  2. Highly Compensated Employee

    For employer-sponsored, tax-advantaged retirement plan purposes, ...
  3. TARP Bonuses

    A buzzword coined by the financial media during the financial ...
  4. Camouflage Compensation

    Compensation that is granted to upper echelon employees, directors, ...
  5. Performance Bonus

    A form of additional compensation paid to an employee or department ...
  6. Base Pay

    An employee's initial rate of compensation, excluding extra lump ...
Related Articles
  1. Professionals

    From The Peak: A Payscale Comparison

    Are financial workers making more or less since the 2007 boom?
  2. Options & Futures

    A Guide To CEO Compensation

    Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.
  3. Economics

    4 TARP Recipients That Made A Profit

    New estimates show that the TARP program may show a profit of $23.6 billion over the life of the bailout program.
  4. Stock Analysis

    Big Banks Doling Out Big Salaries

    On Wednesday, Citigroup joined Morgan Stanley and UBS in announcing that they will be increasing employee and executive salaries.
  5. Options & Futures

    When Wall Street Loses, CEOs Still Win

    Despite the record losses that occurred in the financial sector, many executives still received huge bonuses.
  6. Economics

    TARP 4 Years Later - How Did It All Work Out?

    The TARP program is estimated to cost taxpayers about $32 billion, much less than the OMB's reported estimate.
  7. Options & Futures

    Executive Compensation: How Much Is Too Much?

    The proxy statement can help determine whether a CEO is well compensated - or just overpaid.
  8. Stock Analysis

    6 Banks That Still Need To Roll Up Their TARP

    While bank stocks have generally recovered, a few stragglers remain.
  9. Retirement

    Will "Say On Pay" Go All The Way?

    The Corporate And Financial Institution Compensation Fairness Act is now before Senate. What is it and should it go through?
  10. Stock Analysis

    Executive Bonuses Must Go

    Professor Henry Mintzberg wrote an article about why executive bonuses must go. We look at the Forbes' CEO compensation list for proof.
RELATED FAQS
  1. How does TARP affect the economy?

    TARP - or the Troubled Asset Relief Program - is a government program created in response to the subprime mortgage crisis ... Read Answer >>
  2. Michael Feinberg sends a memo to his star investment advisor ...

    The correct answer is a). Consider the intended target audience when deciding if a communication constitutes advertising. ... Read Answer >>
  3. How do mutual fund managers make money?

    Learn about the compensation structure for fund managers and how investors can obtain information on managers' base salaries ... Read Answer >>
  4. Mike is a highly compensated employee of XYZ Company, his company has offered him ...

    The correct answer is b): One of the most common types of nonqualified retirement plans is the deferred compensation plan. ... Read Answer >>
  5. What are the components of the risk premium for investments?

    The risk premium is the excess return above the risk-free rate that investors require as compensation for the higher uncertainty ... Read Answer >>
  6. Why does executive compensation facilitate when a company buys back its stock?

    Learn about how companies use stock buybacks in order to facilitate executive compensation and why the practice is very controversial. Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center