Monday, May 18, 2009
Treasury Secretary Timothy Geithner says the government should not impose caps on executive pay in the financial sector. However, he said Monday government can set compensation standards to curb excessive risk-taking by financial institutions.
Such standards could combine with compensation disclosure requirements and giving shareholders the ability to vote on salary packages.
Geithner made his comments during an interview at a Newsweek-hosted luncheon.
Wall Street bonuses and retention packages have provoked anger among the public and in Congress. Lawmakers have moved to limit pay for top employees at financial institutions that have received federal government assistance. The standards envisioned by Geithner would apply to all financial institutions.