Wall Street executives are "delusional" if they think their pay will continue to rise significantly, Kenneth Feinberg, the former Obama administration special master on executive pay, told CNBC on Friday.
"In this economy, with this political uncertainty, my advice would be to executives and boards – be careful," Feinberg said.
"It's a volatile political atmosphere, and executive compensation is fair game in times of financial uncertainty."
But while politics may be looming over corporate boards making pay decisions for their executives, Feinberg, the founder of Feinberg Rozen, said that the current discussion on Wall Street salaries is being driven more by free market factors. (Read More: A Bigger Paycheck on Wall Street.)