Will it really happen in November? The Treasury Department’s plan orders “seven big companies that haven’t repaid their government bailout money to cut their top executives’ average total compensation — salary and bonuses — in half, starting in November. Under the plan, cash salaries for the top 25 highest-paid executives will be limited in most cases to $500,000 and, in most cases, perks will be capped at $25,000.” This is directed to the seven companies that have not repaid their government loan which consists of: “Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.”

The Federal Reserve proposes “to monitor pay packages at thousands of banks — even those that never received bailout money — to ensure they don’t encourage reckless gambles.

The Fed proposal doesn’t set specific limits on executive compensation, so it’s unclear how it would actually affect pay. And the Treasury plan covers only 175 people, with the pay limits lasting only until the companies repay what they received from the $700 billion bailout fund.”

Here is a link to the full article: http://news.yahoo.com/s/ap/20091022/ap_on_bi_ge/us_obama_executive_pay

Michelle