Pay Czar Caps Midlevel Execs' Salaries

The nation’s “pay czar” is at it again Friday, and this time, midlevel executives at bailed-out firms are getting a pay cut.

Fewer than 10 of the 450 employees will be allowed to earn more than $500,000 per year, according to a source familiar with the plan, which covers six firms that received federal bailout funds.

Kenneth Feinberg, the special master for TARP executive compensation, will release the next phase of his determinations about pay for those executives Friday, and he’s expected to take a tough stance.

In October, Feinberg slashed pay for the first 25 most highly compensated employees at the TARP firms, prompting complaints from critics that the companies were being put at a competitive disadvantage for attracting and keeping top talent. Now Feinberg will issue pay rulings on employees 26 through 100 at the six companies.