The Obama administration has opted to slash executive salaries at firms rescued by taxpayer bailouts, cutting cash payments by 90 percent amid a public backlash at bloated Wall Street bonuses.

In a dramatic government swipe at big business as unemployment nears 10 percent and the economic crisis reaps a painful toll, President Barack Obama's corporate pay czar also hacked away at corporate perks and "golden handshake" payoffs.

The US Federal Reserve meanwhile fired its own shot at the corporate gravy train, unveiling new rules to curb pay awards at top banks that encourage excessive risk-taking which imperils the wider financial system.

Treasury official Kenneth Feinberg cut cash payouts to the 25 top executives of seven bailed out firms by an average of 90 percent, capping salaries at half a million dollars for most, and reducing total compensation by an average of 50 percent.

Obama, who has expressed outrage at corporate greed and out-of-control Wall Street risk-taking, said Feinberg had taken "an important step forward" in curbing financial excess.

"We don't disparage wealth, we don't begrudge anybody for doing well, we believe in success.

"But it does offend our values when executives of big financial firms ? firms that are struggling ? pay themselves huge bonuses, even as they continue to rely on taxpayer assistance to stay afloat."

The restrictions apply to firms which took the most money from the $700-billion Troubled Asset Relief Program (TARP) set up by the Bush administration last year to stave off a complete financial meltdown.

Those affected include some of the most revered names in US corporate history: AIG, Bank of America, Chrysler, Chrysler Financial, Citigroup, General Motors, and GMAC.

Public anger began to boil over when it was revealed earlier this year that disgraced insurance giant AIG was still paying $165-million in bonuses despite the huge cash injections by Washington.

The issue was also at the fore at the G20 summit of developed and developing nations in Pittsburgh last month.

Record bonuses lapped up by executives of other firms blamed for helping unleash the financial storm have further fueled the populist fire, with little sign the wider jobs crisis is about to abate.

Page two ... Feinderg's measure's