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Obama to introduce executive pay limits for bailed out companies.»

Think Progress- By Faiz Shakir on Feb 3rd, 2009 at 10:25 pm

The Obama administration plans to mandate new executive pay limits for financial companies that are receiving any help from the $700 billion bailout fund. “If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” President Obama said in an interview. Sen. Claire McCaskill (D-MO) has proposed that no employee of a bailed-out company can receive more than $400,000 in total compensation until it pays the money back.

UpdateObama will announce today that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive significant federal assistance in the future.

Update Sen. Bernie Sanders (I-VT) was the first to propose the idea of capping salaries last October. Watch his appearance last night on The Rachel Maddow Show.

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Obama to detail compensation limits on executives

JIM KUHNHENN | February 4, 2009 10:05 AM EST | AP

WASHINGTON — Call it the maximum wage. President Barack Obama wants to impose a $500,000 pay cap on executives whose firms receive government financial rescue funds, a dramatic intervention into corporate governance in the midst of financial crisis.

The new restrictions, described by an administration official familiar with the new rules, are to be announced Wednesday morning at the White House. The steps set the stage for the administration’s unveiling next week of a new framework for spending the money that remains in the $700 billion financial rescue fund.

“If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” President Barack Obama said Tuesday.

The official, speaking on the condition of anonymity because the plan had not yet been made public, said the most restrictive limits would apply only to struggling large firms that receive “exceptional assistance” in the future. Healthy banks that receive government infusions of capital would have more leeway.

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