The feds will drop their plan for salary caps at firms receiving government bailout money — but those companies still would be subject to congressionally imposed limits on bonuses passed in February, it was reported last night.

The Wall Street Journal Web site said that the Obama administration is expected to announce the compromise today.

The administration also will name a “pay czar” to monitor companies getting the most government aid.

According to the Journal report, Treasury Secretary Timothy Geithner is expected to push all firms — not just the ones receiving funds from the government’s Troubled Asset Relief Program — to more closely tie incentive compensation to long-term performance.

That would be accomplished by paying employees in restricted stock rather than cash, the Journal said.