The Obama administration's pay czar is limiting the cash compensation for executives at companies that received the largest taxpayer bailouts to $500,000 and delaying some other payouts.
The 25th through the 100th top earners at Citigroup, GMAC, American International Group and General Motors must take more than half their compensation in stock, and at least half must be delayed for three or more years, said Kenneth Feinberg, the Treasury Department's Special Master for Executive Compensation.
About 12 executives were granted exemptions to the $500,000 cash cap because they were necessary for the companies to "thrive, be able to compete, and not lose key people," he said Friday.
The new rules will only apply to the second half of December, and will not affect what the employees already have been paid this year.
The rules will affect many workers' year-end bonuses and stock grants, Feinberg said. They also will serve as a starting point for negotiations next year over pay packages for 2010.
Feinberg already announced specific pay packages for the top 25 earners at firms he oversees.
Feinberg's rulings don't apply to Bank of America because its bailouts were repaid this week. Chrysler and Chrysler Financial also were exempt because executives there made less than $500,000.
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