Feinberg to Hand Down New Pay Rulings - TheStreet

WASHINGTON (

TheStreet

) -- The Obama administration's pay czar Kenneth Feinberg plans to announce Friday his next wave of rulings on compensation at firms that received bailout funds from the U.S. government.

Feinberg told

Reuters

the rulings likely will reduce pay for the 26th to 100th highest-paid employees at

Citigroup

(C) - Get Report

,

American International Group

(AIG) - Get Report

,

General Motors

,

GMAC

,

Chrysler

and

Chrysler Financial

, firms which received "exceptional assistance" from U.S. taxpayers.

Bank of America (BAC) - Get Report

, which just repaid $45 billion it received from the U.S. government's Troubled Asset Relief Program, will be excluded from Feinberg's rulings.

Citigroup (C) - Get Report

, meanwhile, is reportedly readying a plan for a $20 billion equity offering in preparation for its repayment of funds from TARP.

In his first wave, Feinberg cut overall compensation by 50% and cash pay by 90% at these firms. The rulings expected to be handed down Friday apply only to the final month of 2009, but will set the stage as the baseline for 2010,

Reuters

reports.

The rulings also could sharply scale back 2009 bonuses, which likely will be determined in January after the banks and other TARP recipients report fourth-quarter earnings.