Officials Debate High Pay at Bailed-Out Firms

Government officials are arguing over whether pay is still too high for top executives at bailed-out companies.

The head of a group that watches over the government bailout thinks that pay is too high. Christy Romero on Tuesday told the House oversight committee that taxpayers depend on the government to put a lid on pay at companies whose missteps nearly crippled the U.S. financial system.

She says top executives at companies like AIG, Ally, and General Motors continue to rake in Treasury-approved multimillion-dollar pay packages.

But the Treasury official who approves executive pay argues that the compensation at those companies is reasonable. Patricia Geoghegan says she had to allow the companies to pay enough to attract the talent they need. That way the companies can finish paying back bailout loans.