Executives whose companies received bailout bucks should expect to see smaller paychecks soon.

President Obama today imposed a $500,000 pay cap on executives whose firms receive government financial rescue funds. He made the official announcement this morning, ahead of next week’s unveiling of a new framework for spending what remains of the $700 billion financial rescue fund. The rules will force greater transparency on the use of corporate jets, office renovations and holiday parties, as well as any big financial packages executives may get when they leave companies.

"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn’t just bad taste - it’s a bad strategy - and I will not tolerate it as president," Obama said at the White House with Treasury Secretary Timothy Geithner. "We’re going to be demanding some restraint in exchange for federal aid — so that when firms seek new federal dollars, we won’t find them up to the same old tricks."

The rules apply to companies that receive "exceptional financial recovery assistance" - like AIG, Bank of America, Chrysler, General Motors and Citigroup. Exceptions can be made for some grants of stock or other long-term incentives.

"We’ve now learned that people are still getting huge bonuses despite the fact that they’re getting taxpayer money, which, I think, infuriates the public," Obama told CNN Tuesday. It sure infuriates us, as well as the hard-working people paying for that bailout!

The move isn’t altogether unexpected. After all, despite the banks begging, hat in hand, for a government handout — courtesy of the American taxpayers — we’re still hearing about things like Citigroup spending $50 million on a new jet, and how Wall Street handed out $18 billion in bonuses last year. Obama called that latter move "shameful." Then there’s the news today that Wells Fargo — which got $25 billion in bailout money — canceled a pricey Las Vegas casino trip for employees only after a mountain of criticism came in. Will these guys ever learn?!