Boeing Co. chief executive Jim McNerney’s compensation fell 7.2 percent last year after the commercial airplane maker and defense contractor posted a smaller profit than its board had been looking for. McNerney got cash and other compensation worth $13.7 million, according to an Associated Press analysis of Boeing’s proxy on Monday. That was down from almost $14.8 million the previous year. McNerney’s salary was nearly flat at about $1.9 million. But his 2009 incentive pay fell to $4.5 million, after hitting almost $6.1 million the previous year. Boeing said McNerney got his incentive pay this year based on 2009 performance. His pay also included $1 million in other items, such as $436,478 for personal use of the company jet (which Boeing requires for security reasons) and $269,447 in life insurance premiums. The company also covered more than $90,000 in tax preparation fees for 2009 and 2010.
Federal compensation czar limits GMAC pay
The Obama administration’s pay czar is limiting 2010 compensation for top executives at GMAC Inc. because the auto finance giant continues to lose money and can’t yet repay its $16.3 billion taxpayer bailout, according to people familiar with the negotiations. Only one of the top 25 earners at GMAC will earn more than $500,000 in cash, and CEO Michael Carpenter will receive only stock compensation and no cash, said the people, who spoke on condition of anonymity because they were not authorized to discuss the talks. The agreements follow months of wrangling with Kenneth Feinberg, the Treasury Department’s special master for executive compensation. They reflect his concern that GMAC has no plan to return to profitability or repay its bailout.
Continental Airlines to charge for food
Continental Airlines, which used to boast about giving away free hamburgers and barbecue while rivals passed out tiny bags of pretzels, is changing its tune on food. Continental plans to launch a food-for-sale program that mirrors what other carriers are already doing. A spokesman said Monday that the airline, based in Houston, expects a $35 million annual benefit, from cost savings and added revenue.
Treasury bill rates rise in Monday auction
The Treasury Department auctioned three-month bills at a discount rate of 0.165 percent, up from 0.15 percent last week. Six-month bills were auctioned at a discount rate of 0.24 percent, up from 0.205 percent last week. For a $10,000 bill, the three-month price was $9,995.83, while a six-month bill sold for $9,987.87. That would equal an annualized rate of 0.167 percent for the three-month bills and 0.244 percent for the six-month bills. Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for changing adjustable-rate mortgages, rose to 0.39 percent last week from 0.34 percent the previous week.
From Herald news services
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