Kenneth Feinberg, the Treasury's special master on compensation, has apparently wrapped up his review of the pay of the top executives at seven firms that received massive bailout packages from the government. He will likely release his findings and recommendations ahead of the October 30 deadlines.

Word about his findings is already leaking out. Media reports hold that he has decided to seek large cuts in compensation at AIG (AIG), Bank of America (BAC), Citigroup (C), General Motors, Chrysler, GMAC and Chrysler Financial. The plan basically calls for halving overall compensation, and cutting cash payouts for salaries by an average of 90 percent.

Jim Cramer is among those who have no sympathy. Feinberg's move can have a dramatic effect for some. At AIG's financial products unit, for example, individuals would not receive more than $200,000 in total pay, Reuters reports. You can also bet on more stock compensation over longer-time horizons. This is bad news for Citigroup and Bank of America especially, as they are competing for talent with banks who do not have these restrictions. However, there are fed rules in the works that may affect a broader swath of the financial services industry. 

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