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16 April 2024

Obama seeks $500,000 bailout salary cap

Obama says companies that receive bailout funds have responsibilities to taxpayers. (AP)

The US government will set a salary cap of $500,000 for top executives at companies receiving federal economic bailout funds, an administration official said Wednesday.

President Barack Obama and Treasury Secretary Timothy Geithner were expected to make the announcement at the White House, the official said privately.

She said the measure would apply to executives at companies receiving "exceptional funds," but did not offer further details on its implementation.

On Tuesday Obama previewed the announcement in a series of television interviews, playing into public anger at elevated finance industry salaries at a time of deep economic crisis.

"One of the things that we're going to do tomorrow is talk about the need to control executive compensation for companies that are taking money from the federal government," Obama said in an interview with NBC.

"If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog."