By Cydney Posner

As discussed in a March 22 article in the New York Times, the Obama administration is planning to require increased oversight of executive pay at all banks and Wall Street firms and is considering imposing the requirements on other companies as well. While the breadth and details of the plan are reportedly still under discussion, the article reports that one proposal could impose greater requirements on boards "to tie executive compensation more closely to corporate performance and to take other steps to ensure that compensation was aligned with the financial interest of the company." The proposals might be effected through regulations rather than through legislation. According to the article, the rules would be part of a larger program designed to increase regulation of the "shadow banking" system, including hedge funds, and allow the government to resolve problems at large troubled companies by giving the Treasury secretary "authority to seize and wind down a struggling institution after consulting with the president and upon the recommendation of two-thirds of the Federal Reserve board."

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