Treasury limits pay at five companies

Kenneth Feinberg, who has authority over companies that received exceptional bailout assistance, said Tuesday he was cutting pay for the top 25 executives at GMAC, General Motors Co., Chrysler Group, American International Group and Chrysler Financial.

Feinberg also ordered cash compensation for the top 25 executives to be reduced 33 percent from 2009.

The combined moves generally force companies to put pay in deferred stock awards, which is thought to increase concern among employees for the long-term health of the companies.

The Treasury said 82 percent of the top executives in the five companies would have salaries limited to $500,000, "even though the companies requested many more exceptions."

Feinberg also said he sent requests for information on salaries from 419 companies that received Troubled Asset Relief Program funding, although he has authority to set limits on pay at only those companies that received exceptional assistance. With Citigroup and Bank of America having paid back the government, pay at those firms no longer falls under Feinberg's jurisdiction.

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