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Obama sets salary cap for bailout firms

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Reuters

Posted: Feb 04, 2009 at 1043 hrs IST

Washington US President Barack Obama will set a $500,000 a year cap on executive pay going forward for banks and other companies that take US government funds to stabilize their businesses, an administration official said on Tuesday.

The president's announcement, to be made on Wednesday, will kick off a long term effort to reform executive compensation rules, the official said.

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