Sources: Govt pay czar to probe compensation of top executives at all bailed-out firms

Sources: Pay czar to widen compensation review

NEW YORK — The Obama administration’s pay czar is launching a review of compensation for 25 top executives at all financial firms that received federal bailout money, according to people familiar with the plan.

Kenneth Feinberg can seek to renegotiate any pay deemed not in the public’s interest but can’t forcibly recoup funds, government and banking industry officials have told The Associated Press Monday. Feinberg is to announce the review Tuesday, according to the officials, who requested anonymity because they weren’t authorized to discuss the plan publicly.

The review is required under federal law. It will mainly focus on the 2008 pay awarded to five senior executives and the next 20 highest paid employees at 419 firms that benefited from the $700 billion Troubled Asset Relief Program.