Treasury caps pay for more executives

WASHINGTON, Dec. 11 (UPI) -- The U.S. Treasury's pay czar Kenneth Feinberg Friday announced rules on pay for a new level of managers at companies receiving extraordinary bailout help.

Feinberg previously had addressed pay of top tier managers that fall under his jurisdiction, which include firms designated as requiring help under the Troubled Asset Relief Program beyond the safety net of funds presented to firms in the first stages of the program.

With a few exceptions, Feinberg is allowing executives defined as the 26th through 100th highest paid employees at GMAC, Citigroup, General Motors Co. and American International Group a cash limit of $500,000 for pay, ABC News reported Friday.

Chrysler and Chrysler Financial could also have pay for executives restricted, but for the fact that their 26th highest paid employees already earn less than $500,000.

Bank of America also escaped the restrictions, but did so by paying back the government last week.

Feinberg said the negotiations with companies included "a few disagreements," but were mostly "very cordial."

In October, Feinberg limited pay for the highest paid executives, on average cutting cash salaries about 90 percent and restricting corporate perks, such as dues to country clubs and flights on corporate aircraft.