After news of lavish salaries, bonuses and perks doled out to executives of companies receiving federal bailout money — including one executive's office redecorating tab that topped $1 million — President Obama is rightly changing the rules of the game and fixing one of the glaring weaknesses of the Bush administration's $700 billion federal rescue package.

Obama announced new restrictions for future recipients of federal funds that caps compensation (including perks and bonuses) for executives at companies receiving the largest amounts of taxpayers' money. The $500,000 cap, with an exception for restricted stock that can only be cashed in after the federal dollars are repaid, put the spotlight of shame on some executives who collectively pulled in a staggering $18 billion in bonuses and spent millions on lavish concerts and retreats.

The new restrictions aren't perfect. It would not retroactively apply to companies who have already received funds; and rules should be tightened to close loopholes that could allow companies to sidestep restrictions by agreeing to transparency or seeking shareholder resolutions.

Critics of the restrictions say it could hamper companies from recruiting and retaining the best executives, at a time when they are needed most. Is it not time to recalibrate and look at compensation pegged to longer-term strategies, vision and viability, rather than the ability to turn a fast buck based on risky deals with high payoffs?

The compensation cap sends precisely the right message, at the right time.

What can be more infuriating than watching these folks spending so irresponsibly on one hand, then collecting taxpayers' money with the other as their companies and the U.S. economy continues on a downward spiral?

Obama put it plainly this week in a television interview: "If the taxpayers are helping you, then you have certain responsibilities to not be living high on the hog."

Thank you. Enough said. Now let's get back to getting our economy back on track.