Pay czar: US will not limit executive remuneration

The US government should not micro-manage the remuneration of the private sector's top executives, according to the government's special master for compensation.

Kenneth Feinberg, who was appointed pay czar by Barack Obama earlier this year, has suggested that setting remuneration guidelines must remain the preserve of corporations, apart from those with significant taxpayer bailouts.

Speaking to the House of Representatives' oversight and government reform committee, Mr Feinberg refuted calls for his authority to be extended throughout the North American country's entire financial sector.

He said: "The federal government should not enter the business of micro-managing compensation practices beyond these seven companies by expanding my jurisdiction."

Last week, the pay czar reduced the burden placed on the US taxpayer by executives working at the seven corporations - which include Citigroup, Bank of America and General Motors - by reducing the average remuneration of the top 25 executives by 50 per cent.

Mr Feinberg is now currently scrutinising the pay of around 525 second-tier executives employed by the organisations.