NEW YORK--A U.S. Treasury official overseeing compensation at firms that got big federal bailouts may renegotiate pay packages that he thinks are too generous, the Wall Street Journal reported on its Web site on Sunday.

The official, Kenneth Feinberg, is expected to press firms and employees to rework contracts that are too high, the paper said. If that does not happen, he may reduce compensation in other ways, including future pay, the paper said.