We've suggested that the political furor over the bailout plan has taken a populist turn. It's hardly surprising that executive pay became a sore point in all the haggling. On one side: reformers who wanted to limit the pay of executives of companies who seek aid. On the other side: lobbyists for banks who argue such a move would deny necessary incentives to attract top talent, and Treasury Secretary Henry Paulson. In the end, Paulson relented, agreeing to some limits in some form. As of now, he has only agreed in principle. The devil will be in the details, and there could be many. You have to wonder exactly how pay will be limited. Proponents of this will buttress their case by being specific. Will the Treasury have discretion? Will formulas be used? Will severance packages be banned?

For more:
- here's the New York Times article

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