In a new quarterly report to Congress, Neil Barosfky, the Special Inspector General of the $700 billion Troubled Asset
Relief Program [SIGTARP], disclosed he is reviewing the compensation rulings by Kenneth Feinberg, the lawyer hired by the
Obama Administration to review pay practices at firms that received big government bailouts.

“This audit will assess the criteria used by the special master to evaluate executive compensation and whether the criteria
were consistently applied to all firms receiving exceptional assistance,” Barofsky wrote.

In a November “engagement memo” to the Treasury Department, which manages the TARP, Barofsky wrote he launched the audit
“as part of our continuing oversight.”

Last year, Feinberg announced changes in pay practices for the top 100 executives and other earners at seven firms that
received “exceptional assistance” under TARP. The decisions initially covered Citigroup (C: 3.3, 0, 0%),
Bank of America (BAC: 15.12, 0, 0%), AIG (AIG: 24.19, 0, 0%),
General Motors, GMAC, Chrysler and Chrysler Financial.

Feinberg’s rulings generally cut executives’ cash salaries to $500,000 or less and increased their stock rewards, to better
link their compensation to companies’ long-term performance.

Feinberg is currently reviewing the pay plans for 2010 for the companies that remain under his jurisdiction—AIG, GM, GMAC,
Chrysler and Chrysler Financial. BofA has since repaid its all of its TARP funds, $45 billion, while Citi repaid $20 billion
in extra assistance it received from TARP.

In addition to the audit of Feinberg’s work, Barkosfky