In a statement issued by Kenneth R. Feinberg, the Obama administration's so-called "executive-pay czar," Chrysler Financial will wind down its business by the end of 2011 under the direction of the U.S. Department of Treasury.

The lending company, which has been downsized since GMAC Financial Services was appointed as the captive finance company for Chrysler Group upon its bankruptcy filing on April 30, has received approximately $1.5 billion in federal loans.

Feinberg approved the company's proposed pay structure, which provides compensation greater than that which might otherwise be expected of the company given the degree of federal assistance it has received.

In the letter Feinberg wrote, "Its success in the wind-down of operations and repayment of lenders and investors is largely dependent upon maintaining critical talent. The risk of employee departures must be minimized because Chrysler Financial has publicly stated that it intends to wind down its operations and will have difficulty attracting new employees."

Employees cannot receive stock awards since the company will cease to exist after 2011, so their salaries must compensate for the difference. In 2009, Chrysler Financial's top employee will receive $1.5 million; two others will earn $1.4 million and $800,00; and an additional 19 will earn between $179,000 and $600,000.