The Obama administration plans to announce sharp new limits today on how much executives of bailed-out companies can make, the New York Times reports. The rules, still being hammered out, would cap the pay of top executives at $500,000 and bar them from receiving any bonuses apart from normal stock dividends.
The rules were labeled "draconian" by one compensation expert who says they could drive away talent, but public anger at fat pay packets has been rising. Companies that have already received funds are apparently safe, unless they return for another handout. One example of a potential big cut: Bank of America's Kenneth Lewis took home more than $20 million in 2007.