President Barack Obama intends getting tough on financial institutions that receive big bailout amounts! On Wednesday, Obama and his Treasury Secretary, Timothy F. Geithner, will announce the new 'limits' on executives' compensation, whereby the mandatory restriction of $500,000 would be imposed on the top executives of the bailout recipients.

In addition to the cap on executive compensation, there would also be a prohibition regarding handing out any bonuses, other than the usual stock dividends, to the top executives on top of their base salary.

It is being proposed by the President and the members of the Congress that the executive pay limits be made a pre-condition for companies seeking to receive federal aid.

Nonetheless, administration officials have clarified that the new limits will not be applicable to the robust banks receiving cash infusions; rather, they pertain only to the struggling big companies - like AIG, Citigroup, and Detroit automakers - receiving "exceptional assistance."

Moreover, in his interview with CNN on Tuesday, Obama also emphasized that the compensation caps to be imposed do not suggest unwarranted intrusion by the administration.

Obama said that the move would "ensure that institutions that are taking taxpayer money are not using that money for excessive executive compensation. It's not a government takeover. Private enterprise will still be taking place. But people will be accountable and responsible. And that's what we have to restore in the financial system generally."