The US pay czar Kenneth Feinberg has set a limit of $500,000 in cash salary for four firms that received exceptional bailout aid from the Government.

New rules will affect the 26th to 100th highest-paid executives belonging to Citigroup, American International Group, GMAC and General Motors.

The new rules, which govern 2009 compensation, are likely to affect annual bonuses.

Bank of America escaped new restrictions as it has already paid $45 billion TARP loan. Chrysler & Chrysler Financial aren’t affected as none of their employees at this level are being paid more than $500,000.
 
Feinberg exempted the $500,000 cash salary limit for as many as 12 unidentified executives who were considered essential to their companies. Most of them will be paid between $500,000 and $950,000.