By DARRELL A. HUGHES
WASHINGTON—The U.S. pay czar said that 2010 cash salaries for top executives at five companies that received substantial government assistance will remain at or below $500,000.
The pay restriction covers 82% of executives at firms, including American International GroupInc. and General Motors Co., that Kenneth Feinberg, the Treasury Department's special master for compensation, oversees.
Executives at auto lender GMAC Financial Services took the biggest hit again. GMAC's chief executive officer, Michael Carpenter, will only be paid in stock that must be held over the long term. No GMAC executive will receive a cash base salary of more than $500,000.
Mr. Feinberg plans to reduce total executive compensation at AIG, GMAC, and Chrysler Financial by 15% from 2009. GM and Chrysler Group LLC aren't included in this total because of bankruptcy restructurings that occurred in mid-2009. On average, overall cash for the executives is slated to be decreased by 33% from 2009 levels.
Mr. Feinberg also sent a letter requesting compensation data for as many as the top 25 executives at each of the 419 firms that received TARP funds. The pay review will cover only a short window, but one that captures the 2008 end-of-year bonus season at most large firms.
The review comes amid continuing anger over Wall Street pay at a time of high unemployment. As financial firms recover and return to profitability, they have resumed paying large sums to executives, triggering anger among the public and lawmakers.
The review, which is expected to be completed by late spring, is primarily aimed at larger banks. Mr. Feinberg's letter instructed firms to submit data for any of those top 25 officials whose annual compensation totals more than $500,000.
The companies have 30 days to submit the required compensation data.
—Deborah Solomon and Aaron Lucchetti contributed to this article.The Wall Street Journal
