Obama Unveils Pay Curbs

Updated from 12:04 p.m. EST

President Barack Obama on Wednesday announced a plan to cap executive pay at companies that participate in the Treasury Department's bailout program for the financial sector.

Speaking at a press conference in Washington, D.C., Obama said that compensation for top executives would be capped at $500,000, "a fraction of the salaries that have been reported recently." Obama also said that compensation in excess of $500,000 would be payable in stock that cannot be issued until companies repay the government for bailout money. In addition, firms will have to publicly disclose and justify perks and privileges awarded to employees.

"What gets people upset, and rightfully, so are executives getting rewarded for failure," Obama said. "We're going to be demanding some restraint in exchange for federal aid." ...