Summary - Fed & Treasury Pitch Pay Rules, But Will They Work?

The article, Fed & Treasury Pitch Pay Rules, But Will They Work? details the new compensation rules for executives at banks and other financial institutions set forth by the Federal Reserve and Treasury. The new regulations by the Feds are broad so that they will affect every bank. The new proposals by the Treasury only affect the seven institutions that received large amounts of taxpayer aid. The Feds new rules are not "hard-and-fast" because every institution is different and they believe that the pay practices reflect that. The Feds also want to inform the bank holding companies how they plan to assess their pay practices. The Treasury's new rules is to police the pay for each firms top five executives and the next 20 highest-paid employees. While a better approach may be to adjust each executives pay to his or her duties, consultant Pearl Meyer believes this is a start.