Banks and companies that have received two rounds of federal bailouts will be required to submit any major changes to executive pay for approval by a new federal official who will monitor compensation, the
New York Times
reports, citing two government officials.
The proposal from the Obama administration is part of a broad set of regulations on executive compensation expected to be announced by the administration as early as this week, the
reports. The rules only would apply to companies that received taxpayer money.
Bank of America
American International Group
and its finance arm,
, which all received two rounds of government money, will face the strictest scrutiny from Kenneth Feinberg, the new federal official charged with vetting compensation, according to the
Feinberg is known for overseeing payouts to the families of the victims of the Sept. 11, 2001, attacks.
Feinberg, the administration's compensation czar, will evaluate all executive compensation changes at the companies that have received more than one taxpayer lifeline.
Meanwhile, Monday is the deadline for regulators to approve the capital-raising plans of nine of the country's largest banks, as part of the stress-test process, the
Wall Street Journal