NU Online News Service, March 23, 3:51 p.m.EDT

WASHINGTON–Salaries of the 25 top executives atAmerican International Group and other companies receivinggovernment help must be cut on average by one-third from lastyear's levels, government pay czar Kenneth Feinberg said.

In addition, Mr. Feinberg, the Treasury special master oncompensation, said today he has also ordered that the total paypackage including deferred compensation and stock options forexecutives at AIG, GMAC and Chrysler Financial be reduced 15percent compared to the pay these executives received in 2009.

His rulings pertained to 2010 pay for firms that received"exceptional compensation under government programs implementedafter September 2008 to aid large companies in financialdistress."

"Total pay decreased even including the value of the long-termstock the special master is requiring executives to hold over thelong term," he said.

At the same time, the special master said he had ordered thecash salaries paid at the AIG Financial Products unit frozen. Thatsubsidiary was responsible for the complicated financial maneuversthat brought AIG to near bankruptcy requiring a governmentbailout.

He also said that he had ordered pledges to repay bonuses thatthe employees had agreed to repay "fully repaid, and that alladditional compensation at the AIGFP unit be made in stock thatmust be "held over time."

AIG officials declined comment. The company has said previouslythat t AIGFP employees, both current and former, had agreed torepay $45 million in bonuses, A source said AIG has "gotten most ofthat back."

AIG has been winding down the financial products unit, andletting employees go as the work volume declines.

Mr. Feinberg also said that concerns that cutting salaries atthese companies would result in a mass departure of top talent arenot accurate.

Specifically, he said that according to his findings, 4 percentof executives included in 2009 rulings remain with thecompanies.

Mr. Feinberg also released a letter requesting information oncompensation paid to the 'Top 25′ executives at each firm thatreceived assistance under the Troubled Asset Relief Program beforeFeb. 17, 2009 to obtain information needed for the 'look back'review required by the January 2009 Recovery Act under which heworks.

He wants the information back within 30 days, Mr. Feinberg saidin the letter. He said that, based on the law and TreasuryDepartment regulations, he will review the information to determinewhether any payment was inconsistent with the public interest.