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RISING MOGUL IS WORKING ON HIS 3RD ACT
PAGE 15

ROGER COHEN ON IRAN’S AWAKENING
PAGE 7

BREAKAWAYS NOT ALLOWED ON THIS TOUR
PAGE 13

HALTING THE TORMENT OF BULLYING
PAGE 8






THURSDAY, JUNE 11, 2009

THE GLOBAL EDITION OF THE NEW YORK TIMES

GLOBAL.NYTIMES.COM

U.S. to limit corporate pay but without a heavy hand
WASHINGTON

Tough stance on N. Korea awaits full U.N. council
UNITED NATIONS

Appointment of overseer reflects growing federal role in ailing companies
BY STEPHEN LABATON

5 core members approve draft measure for export and financial sanctions
BY NEIL MacFARQUHAR

The administration of President Barack Obama on Wednesday appointed a compensation
overseer with broad discretion to set the pay for 175 top executives at seven of
the largest U.S. companies, which have received hundreds of billions of dollars in
government assistance to survive. The mandate given to the new compensation official,
Kenneth R. Feinberg, a well-known Washington lawyer and mediator, reflects the government’s
increasingly intrusive role in the affairs of deeply troubled companies. But in wading
into the politically explosive issue, the Obama administration’s latest plan attempts
to walk a fine line between satisfying public demand for controlling excessive pay
and not spooking Wall Street, which the White House is hoping to rely on to help
buy the troubled mortgage-backed assets at weaker banks. In announcing the program,
Timothy F. Geithner, the Treasury secretary, said that financial institutions were
still worried about the ‘‘political risk’’ of becoming subject to greater
government regulation if they participated in the program to buy toxic assets and
relieve the balance sheets of the most troubled banks. From a nondescript office
in the Treasury building, Mr. Feinberg will set the salaries and bonuses of some
of the top executives in America, including Kenneth D. Lewis, the chief executive
of Bank of America; Vikram Pandit, who leads Citigroup; and Fritz Henderson, the
chief executive of General Motors. The compensation of executives at some of the
companies receiving aid

By bike, bus and shoe leather in London

DOMINIC LIPINSKI/THE ASSOCIATED PRESS

Commuters crossing Waterloo Bridge in London on the way to work Wednesday as thousands
of subway workers went on strike and drove the city into transportation chaos. The
subway was almost at

a standstill, transportation officials said. Buses were running normally, but were
overcrowded. The 48-hour strike by members of the Rail Maritime and Transport union
over pay, job security and disciplinary issues is expected to end Thursday evening.

As workers die on job in Italy, a call for change
TURIN

Bitter rivalry shapes Iran’s election
TEHRAN

BY ROBERT F. WORTH

BY ELISABETTA POVOLEDO

The plan attempts to walk a fine line between satisfying public demand for change
and not spooking Wall Street.
provoked a firestorm of public outrage earlier this year. In revising a previous
proposal to set pay limits, the Obama administration has decided to leave the success
or failure of the effort to curtail high compensation at the assisted companies in
the hands of Mr. Feinberg, who will not receive any government compensation for his
job. The announcement was part of a broader set of recommendations on executive pay
that would affect all publicly traded companies. Mr. Geithner called on the U.S.
Congress to adopt ‘‘say on pay’’ legislation giving shareholders the ability
to hold nonbinding votes on compensation levels. Mr. Obama, while in the Senate,
sponsored such legislation, which was fiercely opposed by many large companies. ‘‘This
financial crisis had many significant causes, but executive compensa-

COMPENSATION, PAGE 16

A phone rang in the early hours of Dec. 6, 2007, in the gatehouse at the ThyssenKrupp
steel mill in Turin. A security officer, Claudio Perrotta, picked up the receiver.
‘‘I heard a voice screaming,’’ Mr. Perrotta testified in a Turin court a
few weeks ago. A fire had broken out on one of the production lines and was quickly
spreading out of control. Though ambulances and firefighters were called, seven workers
died as a result of injuries sustained in the blaze, an accident that shook the country.
In Italy, which has long had one of the worst job-safety records in Europe, such
fatalities are known as ‘‘white deaths’’ because direct responsibility often
cannot be determined. But recent tragedies like the steel mill fire have pushed the
issue to the forefront of public consciousness and spurred calls for change. Harald
Espenhahn, chairman of ThyssenKrupp’s Italian division, went on trial in January
for second-degree murder — the first time in Italy that such a serious charge has
been sought in an industrial accident. Five other ThyssenKrupp managers are being
tried with him on manslaughter charges. ThyssenKrupp has denied the charges. When
three workers died as a result of an industrial accident in an oil refinery
ITALY, PAGE 16

In a makeshift war room in north Tehran, two dozen young women clad in fulllength
black chadors are logging election data into desktop computers 24 hours a day, while
men rush around them carrying voter surveys and district maps. This nerve center
in the campaign to unseat Mahmoud Ahmadinejad, Iran’s hard-line president, is not
run by any of the three candidates who are challenging him in an election on Friday.
Instead, it is part of a bitter behindthe-scenes rivalry between Mr. Ahmadinejad
and Ali Akbar Rafsanjani — a

two-time former president and one of Iran’s richest and most powerful men — that
has helped define the campaign. On Tuesday, Mr. Rafsanjani, who is backing the campaign
against Mr. Ahmadinejad, released an extraordinary open letter in which he complained
about the president’s ‘‘insults, lies, and false allegations’’ and asked
the country’s supreme leader to intervene. The letter came a week after Mr. Ahmadinejad,
during a campaign debate, accused Mr. Rafsanjani of stealing billions of dollars
of state money and called him ‘‘the main puppet master’’ behind the campaign
against him. The president clearly hopes to associate his rivals with Mr. Rafsanjani,
who is

one of the Islamic republic’s founding figures but is widely viewed as corrupt.
But Mr. Rafsanjani now appears to be raising the stakes, betting that the ferocity
of Mr. Ahmadinejad’s accusations will be seen as an attack on the country’s political
elite and even on the country’s Islamic system of government.

One of the republic’s founding figures is fighting the president.
‘‘If the system cannot or does not want to confront such ugly and sin-infected
phenomena as insults, lies, and false allegations made in that debate, how can we
consider ourselves followers of the sacred Islamic system?’’ Mr. Rafsanjani wrote.
No sooner had the letter been released than Mr. Ahmadinejad’s campaign began copying
and distributing it, clearly betting that it would play in their favor to keep Mr.
Rafsanjani in the spotlight, said Mohammad Ali Abtahi, president of the Institute
for Interreligious Dialogue, a study group here. In the letter, Mr. Rafsanjani noted
that Iran’s supreme leader, Ayatollah Ali Khamenei, had ‘‘deemed it best to
remain silent,’’ instead of censuring the president for his vitriolic attacks
during the debate. He wrote the letter only after demanding an apology and requesting
an opportunity to rebut the charges against him on state television,
IRAN, PAGE 4 IRAN’S CANDIDATES AT ODDS ON ECONOMY

BEN CURTIS/THE ASSOCIATED PRESS

A supporter with an Ahmadinejad banner at the president’s final campaign rally
Wednesday in western Tehran. Three people are challenging the president in the election
Friday.

In the vigorously fought Iranian presidential campaign, voters do not know what to
believe. PAGE 4

The core group of United Nations Security Council members has approved a draft resolution
that would significantly toughen export and financial sanctions against North Korea,
including possible inspections of North Korean cargo vessels on the high seas, diplomats
said Wednesday. The sharply worded resolution, which took more than two weeks to
negotiate and was presented to the full Security Council on Wednesday morning, puts
North Korea on notice that not just its usual Western adversaries but even friends
like China and Russia want it to put the brakes on its nuclear program. ‘‘Having
sanctions is not our choice,’’ Vitaly I. Churkin, the Russian ambassador, told
reporters, ‘‘but a certain message must be sent.’’ There was no immediate
reaction to the news from North Korea’s government, but it has repeatedly said
that inspections of North Korean ships or other intrusive steps taken by the Security
Council would be seen as an act of war. In the preamble, the draft resolution condemns
the underground nuclear test North Korea carried out on May 25, saying it ‘‘generated
increased tension in the region and beyond.’’ The draft demands that North Korea
not conduct any further nuclear tests, that it suspend its ballistic missile program
and that it rejoin the Nuclear Nonproliferation Treaty. Western diplomats involved
in the talks over the resolution used words like ‘‘significant’’ and ‘‘unprecedented’’
to describe the sanctions included in the resolution. These are not, however, new
sanctions but rather a fleshing out of the measures proposed but never enacted against
North Korea after it tested a nuclear device in 2006. At the time, the Security Council
backed off putting the sanctions into effect because North Korea agreed to resume
negotiations about dismantling its nuclear program and allowing nuclear inspectors
into the country. Once presented to the full Security Council, the new resolution
could be voted on as early as Friday, assuming there are no strong objections. It
was negotiated by the five permanent members — the United States, Russia, China,
Britain and France — along with South Korea and Japan. Given the weight of the
five permanent members behind it, significant opposition is unlikely. Then comes
the question of carrying out the measures, because not all resolutions are equally
respected by United Nations member states when it comes to difficult measures like
stopping and inspecting cargo vessels. The resolution has taken days and days of
long negotiations, largely because China and Russia, although supportive of a tough
message, did not want to make it so harsh as to provoke or destabilize the North
Korean government. The resolution calls on North Korea to
NORTH KOREA, PAGE 4

WORLD NEWS

28 killed in Iraq car bombing

The attack was the first directed at civilians near the southern city of Nasiriya
in the past two years. PAGE 4

Washington has won an agreement to transfer up to 17 Chinese Muslims from the Guantánamo
prison to Palau, an island nation in the Pacific. PAGE 5

Pacific home for some detainees

BUSINESS

VIEWS

French e-piracy law gutted

U.S. obstacle on inmate data

To persuade other countries to accept Guantánamo detainees, Washington will have
to share information, Judy Dempsey writes. PAGE 2 The U.S. special representative
to Pakistan and Afghanistan said he had noticed a big change in Pakistan’s attitude
on fighting extremists. PAGE 4

The highest French constitutional body defanged the government’s plan to cut off
the Internet connections of digital pirates, a major setback for President Nicolas
Sarkozy. PAGE 15

Lebanon’s government is far from stable. Nevertheless, on election day the Lebanese
mainstream — armed with ballots, not bullets — showed that moderates can win.
PAGE 7

Thomas L. Friedman

China drives up commodities

Hope seen on Pakistan effort

Strong buying by China has helped lift global commodity prices, but evidence suggests
that a sizable portion of these purchases has been to build stockpiles and may not
be sustainable. PAGE 16 The Swedish central bank will borrow ¤3 billion from the
European Central Bank to buy time to build up foreign currency reserves as part of
a strategy to curtail banking system risks. PAGE 17 Chrysler completed its deal with
the Italian carmaker Fiat on Wednesday, largely ending its quick trip through bankruptcy.
The reorganization of Chrysler took just 42 days. PAGE 15

Overseas, under the knife

Three medical experts look at why many Americans — with and without good health
insurance — are seeking medical care abroad. PAGE 6

Sweden seeks bank stability

ONLINE

More trouble for U.K. police

RÉMY DE LA MAUVINIÈRE/AP

Six British police officers have been suspended or placed on restricted duty after
being accused of mistreating suspects. PAGE 3

Chrysler and Fiat complete deal

Tracking French meteor’s path

Was Rachida Dati, a high-profile French politician, the target of a Machiavellian
coup, or a victim of naïveté? PAGE 2

Gunfire at Holocaust museum
A gunman and a guard were wounded inside the U.S. Holocaust Memorial Museum on Wednesday.
PAGE 4

Chang W. Lee was ambivalent about working in video until a camera came out that allowed
him to use the same lenses he used as a still photographer, while working in extremely
low light. Mr. Lee has incorporated the aesthetics of his still photography into
six intimate videos of people forging new lives for themselves. The series begins
with the story of a jazz singer and single mother, Deanna Kirk. lens.blogs.nytimes.com
STOCK INDEXES

Photographer embraces video

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