The Obama administration plans to order that the top earners at firms which received billions of dollars in government bailouts will see their cash payouts cut by an average of about 90 percent from last year, a source familiar with the matter said on Wednesday.
The sweeping cuts, negotiated by the U.S. pay czar, Kenneth Feinberg, will mark a bold move for an administration that has recently railed against excessively high pay on Wall Street.
The total compensation for the top 25 earners at the seven firms will be reduced by an average of about 50 percent, the source said, speaking anonymously because the decisions have not yet been made public.
Feinberg said on Tuesday that he may publicly disclose his rulings before the October 30 deadline.
The companies affected are: AIG, Bank of America, Citigroup, General Motors, Chrysler, GMAC and Chrysler Financial.
(Reporting by Karey Wutkowski, Steve Eder and David Lawder)