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The pay curbs will only apply to companies seeking fresh money from the government and not to those which have already received capital injections.



In addition, executives could also receive restricted stock. However, this could only be sold once the government has been repaid.



The UK government has also announced curbs on executive pay. British multinationals Royal Bank of Scotland and Lloyds group have been partly nationalised by the government.



Meanwhile French President, Nicolas Sarkosy, announced he will act to restrict traders' bonuses in an attempt to reduce effective risk-taking. In January, he forced executives whose institution received state aid to forgo bonuses for 2008.