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. TARP Bonuses

    A buzzword coined by the financial media during the financial ...
  3. Highly Compensated Employee

    For employer-sponsored, tax-advantaged retirement plan purposes, ...
  4. Troubled Asset Relief Program - ...

    A government program created for the establishment and management ...
  5. Camouflage Compensation

    Compensation that is granted to upper echelon employees, directors, ...
  6. Cash Awards

    An award given to an employee or contestant in the form of cash. ...
Related Articles
  1. Trading

    Evaluating Executive Compensation

    Find out how to determine whether a CEO is being overpaid.
  2. Insights

    5 Tech Companies With High Stock-Based Compensation (GOOGL, AMZN)

    Examine stock-based compensation among large tech firms to determine which factors are driving equity compensation and how executive grants are determined.
  3. Markets

    The Pros and Cons of Executives' Pay Tied to Stock Performance

    Watch for situations where lavish executive compensation is either not justified by total shareholder return or rationalized by non-GAAP measures.
  4. Trading

    A Guide To CEO Compensation

    Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.
  5. Personal Finance

    Liquidity And Toxicity: Will TARP Fix The Financial System?

    TARP is the government's attempt to forestall a deep, extended recession. Will it work?
  6. Markets

    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. Retirement

    How Non-Qualified Deferred Compensation Plans Work

    These tax-advantaged retirement savings plans have their pros and cons, and employers and employees must follow strict guidelines.
  8. Retirement

    Deferred Compensation Plans Vs. 401(k)s

    Discover the major advantages and disadvantages offered by deferred compensation plans for retirement as compared to a 401(k) plan.
  9. Investing

    A Close-Up On Gross Ups

    Learn about this hidden perk and why it's often bad news for investors.
  10. Trading

    Executive Compensation: How Much Is Too Much?

    The proxy statement can help determine whether a CEO is well compensated - or just overpaid.
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. What is an evergreen provision and how does it affect shareholders?

    It is common for publicly-traded corporations to provide more than just regular salary compensation to their management and ... Read Answer >>
  4. I've noticed executives buy a lot of stock below market value, and then they sell ...

    On October 30, 2006, a Google executive officer purchased 2,541 shares of Google at $9 per share and sold these same shares ... Read Answer >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center