Getting a Grip on Pay
Sen. Christopher Dodd
The Connecticut Democrat inserted restrictions that limit executive pay for recipients of federal aid to a base salary and a bonus up to one-third of total compensation. Because most compensation is in the form of bonuses, the restrictions would sharply reduce pay packages.
THE WHITE HOUSE
Dodd's restrictions go far beyond the White House plan. Obama limited base pay to $500,000, but the restrictions were not retroactive, companies could opt out in most cases and could award executives an unlimited amount of restricted stock.
Some worry top talent will leave the industry because of the restrictions. Some banks say they'd like to repay the government, which would free them from the limits, but raising the necessary money could be difficult. At right, top executives of big banks that accepted a federal bailout.