Top execs at GM and Chrysler could be in line for 90 percent pay cut

Top-level executives at General Motors and Chrysler have enjoyed cushy paychecks for the better part of six decades, but that practice will likely come to an end in 2010 as the United States government looks to slash executive compensation at publically funded institutions.

According to Automotive News, the Obama administration is planning to cut executive pay at companies that received federal bailout money – including General Motors, Chrysler, GMAC and Chrysler Financial – by as much as 90 percent. No word if executive bonuses will be equally affected, but the move will put a significant dent in the pocket of top-level employees.

Per regulatory filings, GM CEO Fritz Henderson currently takes home $1.3 million in yearly salary. GM CEO Ray Young earns $720,000 while GM Chief Accounting Officer Nick Cyprus takes home $522,000.

Additionally, similar cuts will be made at financial institutions – such as AIG, CitiGroup and Bank of America — that took loans from Uncle Sam. An insider revealed to Automotive News that no executive at AIG will take home more than $200,000 in 2010.

However, those financial institutions that have already paid back their TARP loans – like Goldman Sachs and Morgan Stanley – will be free to regulate their own executive compensations.