And of course, the rest of the article.....
While the administration has approached the issue too cautiously for many Democrats, a top Republican said its plans amounted to "incessant government intervention."
"The president cannot continue his heavy-handed meddling in the private sector and expect it to function, much less flourish," said Rep. Tom Price of Georgia, chairman of the Republican Study Committee.
Until now, the attention to executive pay has focused almost exclusively on companies that are receiving assistance under the $700 billion Troubled Asset Relief Program established last fall to address the financial crisis. With those firms, the administration has shown a greater willingness to restrict compensation.
On Wednesday, it set bonus limits on companies that receive TARP assistance, with the toughest restrictions aimed at seven recipients of "exceptional assistance." They are Citigroup Inc., Bank of America Corp., General Motors Corp., Chrysler LLC, American International Group Inc., GMAC LLC and Chrysler Financial.
The regulations followed requirements set by Congress earlier this year when it passed the $787 billion economic stimulus legislation. The regulations will limit top executives of companies that receive TARP funds to bonuses of no more than one-third of their annual salaries. But the administration also went beyond the steps mandated in the legislation.
The administration named Kenneth Feinberg, a lawyer who oversaw payments to families of Sept. 11 victims, as a "special master" with power to reject pay plans he deems excessive at the seven companies with the biggest injections of public money. Feinberg also would have authority to review compensation for the top 100 salaried employees at those companies.
But on Thursday Democrats and administration officials agreed that companies across the private sector need to adjust compensation practices to avoid damaging the economy.
"We believe that compensation practices must be better aligned with long-term value and prudent risk management at all firms, and not just for the financial services industry," Sperling said.
The Federal Reserve, meanwhile, is developing its own set of compensation guidelines for the banks that it oversees. The Fed already has standards for banks that declare that compensation that could lead to material financial losses is considered unsafe and unsound. But regulators are prohibited from using those standards to prescribe specific levels of pay.
The SEC also is considering strengthening its rules, including one that would set new disclosure requirements for shareholders regarding conflicts of interest between compensation consultants and corporate management.
Some firms are already adopting compensation practices that pay greater attention to long-term performance by extending bonuses over a period of time.
"The industry has moved itself quite significantly toward cleaning up that act," said John Benson, CEO of eFinancialcareers.com, a career management firm for financial services professionals. "What the government is doing is putting a voice to that public mood."
Well as you can see from the rest of the article that PL didnt feel like posting:
1. The Administration is taking a middle of the road approach to the debate at this time.
2. The government has already asked for prudence in CEO pay for banks but with no actual guidelines, making it ineffective
3.The SEC is considering doing exactly what I said would be the most likely outcome
4. Public attention has led to some measure of self policing.