Obama announced a caps on executive compensation at $500,000 for companies that receive bailout money; sort of. First off, this only applies to companies from here on out that take more TARP (Troubled Asset Relief Program) money. Compensation above the $500,000 can be given but must be in the form of stock which does not vest until the company had repaid the government (meaning they can not sell the stock until they pay off the TARP loan). Alternatively, they can apply for a waiver and jump threw a few hoops including non-binding shareholder votes. (More at http://blogs.abcnews.com/politicalpunch/2009/02/president-obama.html.)
While the thought of the government setting limits on how much someone can make, even a limit with loopholes, is a frightening prospect to me there could be a silver lining here. Hopefully, this will dissuade companies from taking the government money.
Video embedded below. (From http://hotair.com/archives/2009/02/04/obama-to-execs-who-take-tarp-money-learn-how-to-survive-on-500k-a-year)