Obama to Cap Exec. Pay at $500,000

President Barack Obama on Wednesday will announce a $500,000 cap on compensation for executives of companies receiving bailout funds, according to the White House.

Obama (D) and Treasury Secretary Timothy Geithner are scheduled to make the announcement at Wednesday morning.

The White House confirmed news reports that the administration will limit the salaries of executives as well as prohibit them from receiving bonuses above that base pay, with the exception of stock dividends.

The announcement comes on the heels of a report last week by the New York State comptroller that found that Wall Street employees raked in $18.4 billion in bonuses in 2008, the sixth largest in state history.

The report was quickly condemned last week by Obama, who said the bonuses were