Treasury to slash pay for executives

WASHINGTON, Oct. 21 (UPI) -- The U.S. Treasury is preparing to order bailed out companies to cut their top executive salaries about 90 percent, a source close to the discussions said.

The New York Times reported that a government official said the Treasury's pay czar Kenneth Feinberg had set schedules on compensation for executives under his jurisdiction with drastic cuts. The pay schedule would drop total compensation for the top 25 executives at seven firms by an average of 50 percent, the Times reported.

Feinberg has jurisdiction over the highest paid executives at Citigroup, Bank of America, American International Group, General Motors, Chrysler, GMAC and Chrysler Financial.

Although more than 650 firms received Treasury funds in the past year, the Troubled Asset Relief program allows for the government to set salaries at companies that received extraordinary assistance.

Huge salaries at bailed out companies have been met with political uproar in the United States and Europe. Recently, White House officials have turned up the rhetorical heat. White House adviser David Axelrod called the huge bonus checks "offensive."