NEW YORK (Reuters) - Troubled financial giants getting cash infusions from the U.S. government owed executives more than $40 billion for deferred pay and pensions as of the end of 2007, the Wall Street Journal reported in an analysis.

The exterior of the world headquarters for Morgan Stanley & Co. Incorporated is seen in New York, May 19, 2008. REUTERS/Lucas Jackson/Files

The sums owed are mostly for special executive pensions and deferred compensation, including bonuses, for prior years, said the paper.

The Journal cited investment banks Goldman Sachs Group Inc, which owes its executives $11.8 billion; JPMorgan Chase & Co, which has a payment of $8.5 billion pending; and Morgan Stanley, which owes between $10 billion and $12 billion.

A Morgan Stanley spokeswoman confirmed the accuracy of the report. Goldman Sachs said the “vast majority” of the $11.8 billion cited was paid out to executives earlier this year.

Beyond that, Goldman Sachs, Morgan Stanley and JP Morgan Chase declined to comment on their compensation plans.

Criticism of executive pay has gained momentum this election year, with presidential candidates from both major parties lashing out over rich payouts for CEOs of companies that have suffered big losses in the U.S. housing market bust and ensuing credit crisis.

As a result, the government has sought to rein in executive pay at banks getting federal money as part of the Bush administration’s $700 billion bailout program.

Across the industry, bank executives and directors are discussing how they will handle the need to remain competitive in paying top people without incurring the anger of lawmakers and regulators.

People familiar with the situation inside several of the top U.S. banks told Reuters most compensation decisions will not be made until next month. These people also say the firms still intend to compensate valued employees.

“The government cutting or controlling pay is a non- starter. Bank heads think it’s dangerous and it sets a bad precedent,” one bank insider said.

Goldman, Morgan Stanley and Merrill Lynch have set aside $20 billion as compensation in the first three quarters, with two-thirds typically earmarked for year-end performance bonuses. These amounts were put in reserve before Aug. 31, ahead of Lehman’s collapse and last month’s Treasury intervention.

Compensation is accrued throughout the year and usually equals 45 percent to 55 percent of revenue.

For instance, nine banks paid out an estimated $50 billion in bonuses in 2007, based on the total compensation expense for the companies and assuming that, for investment banks, about 60 percent of total compensation was allocated for bonuses, while commercial banks allocated about 20 percent for that purpose.

The total of these obligations at some firms exceed what they owe in pensions to their entire workforces, the Journal said.