Various lines drawn in the sand this morning leave Andrew Cuomo and Barney Frank on the same side of the lot, which should come as little surprise to anyone. The reach of the latest rounds of salary caps would seem to be a bit further than, we suspect, anyone suspected.
Mr. Cuomo is examining ways to further stagger both cash and stock compensation payments over several years, according to people familiar with the matter. This way, if a business built on short-term risk-taking blows up, firms will be able to claw back pay.
Riddle us this, Dealbreaker: If, as everyone on the government side of the lot seems anxious to assure us, most firms will have paid e.g., TARP funds back, how will salary caps and similar restrictions be enforced? That is... unless these new salary laws aren't limited to firms taking government assistance.
Cuomo, Frank Seek to Link Executive Pay, Performance [The Wall Street Journal]