Feb. 4--Chief executives at several Chicago-area banks that have recently received money from the U.S Treasury Department's Troubled Asset Relief Program might not be affected by an Obama administration plan to put a $500,000 cap on executive compensation at select institutions participating in the capital infusion plan.

The rules haven't been officially unveiled, but the most restrictive limits would apply only to struggling large firms that receive "exceptional assistance" in the future, Associated Press reported. Healthy banks that receive government infusions of capital would have more leeway.

Firms that want to pay executives above the $500,000 threshold would have to compensate them with stock that could not be sold or liquidated until they pay back the government funds, AP said.

Banks and other financial institutions that receive capital infusions, but are considered healthy, could waive the $500,000 salary cap and the stock restrictions under the new Obama rules. But the companies would have to disclose the compensation and submit the pay plan to shareholders for a nonbinding vote, AP said.

Chicago-area banks in which Treasury has bought preferred stock include Northern Trust Corp., Taylor Capital, Midwest Banc Holdings, Wintrust Financial and PrivateBancorp.

Rick Waddell, who became CEO of Northern Trust on Jan. 1, 2008, had 2007 salary of $706,000 and total compensation of $6 million as president in 2007. The Chicago-based bank sold nearly $1.6 billion in preferred shares to Treasury.

Taylor Capital, parent of Cole Taylor Bank, received $105 million. Chairman and CEO Bruce Taylor had total compensation of $715,000 in 2007, including salary of $519,761.

Midwest Banc Holdings Inc. got $85.5 million in aid. James Giancola, who last Thursday abruptly stepped down as CEO, received total compensation of $1.9 million in 2007, including salary of $585,000.

Wintrust Financial got $250 million in TARP money. CEO Edward Wehmer had total compensation of $2 million in 2007, including $697,917 in salary. Wehmer said he hasn't taken a bonus in three years on his own volition.

Larry Richman, a former LaSalle banker who became CEO of PrivateBancorp in late 2007, received base salary of $785,000 in 2008, according to the company's proxy. PrivateBancorp took $244 million from the Treasury.

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