Released: October 22, 2009

U.S. to cut pay for bailed-out bosses

Source: Tomoeh Murakami Tse & Brady Dennis, Washiington Post (Free Registration)

The Obama administration plans to order companies that have received exceptionally large amounts of bailout money from the government to slash compensation for their highest-paid executives by about half on average, according to people familiar with the long-awaited decision.

The cuts will affect 25 of the most highly paid executives at each of five major financial companies and two automakers, according to the sources, who spoke on the condition of anonymity because the plan has not been made public. Cash salaries will be cut by about 90 percent compared with last year, they said.

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