As expected, the White House has just announced new restrictions on executive pay to be issued by the Treasury Department, in response to public outrage over cases of CEOs of bailed out firms raking in millions.
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The limits set a limit of $500,000 on executive pay, for those firms receiving "exceptional financial recovery assistance" -- that is, firms that negotiated "bank-specific" deal with Treasury, including Bank of America, AIG, and Citi. Any pay beyond that must be made in restricted stock that can only be paid once the government has been paid back.
The restrictions also would give shareholders more say on executives' pay, and would make it easier for the government to "claw back" the pay of executives who had engaged in deceptive practices, among other provisions.
Last week, President Obama called the billions paid out in Wall Street bonuses last year "outrageous."
The White House's press release, with a detailed description of the new rules, follows after the jump ...