The top 25 executives at AIG, Citi and Bank of America are to see their compensation cut by some 90% this year, after US 'pay czar' Kenneth Feinberg, supposedly acting in the interests of the US taxpayer, reviewed their pay.

Here's what the smart money has to say to the subject:

'If you want a graphic example of why government will never succeed in business  - If I had a $50bn investment in a company, I would want to make damn certain I had the very finest managers I could get, no matter what I have to pay. This is sheer stupidity. Just think about the investment our government has got in these companies. This is not a government job. The taxpayers have an enormous financial risk in these companies, and very simply stated, I want the best person. If I needed neurosurgery, I would want the finest doctor I could get, no matter what I had to pay for it'.

Ken Langone, co-founder Home Depot (Bloomberg)

'The big worry must be Bank of America. Why would a quality external candidate give up a decent job to take over from CEO Ken Lewis ? He (or she) will face heaps of abuse, government interference, and will no get paid peanuts in comparison to what he is probably currently earning. An internal candidate is therefore likely to get the job by default - and someone who was probably partially responsible for the mess the bank got itself in in the first place. This makes no sense'.

Vic Daniels, Editor, Here Is The City

'If any of these people left, I would be very disappointed'.

Pay Czar Ken Feinberg (The New York Times)

'An inability to pay people based on their performance and value to the company puts them at risk. Competitors not subject to the pay restrictions already are exploiting the situation'.

Bank of America (The Financial Times)

'I don't think there will be any charity cases on Wall Street'.

US Representative Barney Frank (The Guardian)

Reader Comment

'It's a mistake to assume that good people can't be found for lower than sky-high salaries. Most of the time the top guys were doing what anyone else sitting in that chair would have done - adding no value'.

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