Top executives ordered to take pay cut

Head of the United States Government oversight body for companies which received bailouts because of the meltdown in the economy, has ordered top executives to take a pay cut.



Kenneth Feinberg has told the 120 top executives at these firms to reduce their salaries by an average of 15 per cent.



Mr Feinberg oversees the pay deals of senior bosses at banks and other financial groups which have received financial support from the US government under the Troubled Asset Relief Program.



The five companies are the insurance giant AIG, and carmakers GM and Chrysler as well as GM\'s former finance arm, GMAC and Chrysler Financial.



Earlier this year, AIG made substantial bonus payments on old contracts.



At the time, Mr Feinberg called the payments outrageous and promised that action would be taken to prevent a recurrence.