The new restrictions covering the most of the 26 to 100 most highly compensated employees at bailed out firms AIG, Citigroup, GM and GMAC were issued today by President Obama's Pay Czar Stephen Feinberg.
There are some exemptions at AIG for 12 employees, which has received $182 billion in government loans, according to the Associated Press.
The exemptions were needed for the companies to thrive, be able to compete, and not lose key people, he said.
Feinberg had previously issued pay restrictions for the Top 1 to 25 employees earlier this year.
Among the most important restrictions today are:
- Cash salaries are limited to $500,000.
- At least 50 percent of pay must be held for at least three years
- Half of that must be given in long-term stock.
- Cash incentives must be delivered over two years.
- Perquisites will also be limited to $25,000
Bank of America was exempted because it paid back all of its bailout funds earlier this month. Also, Chrysler and Chrysler financial were exempted because their executives were paid less than the $500,000 limit.