Pay czar plans radical changes in banker compensation


Analysts have pointed out that restricting compensation, especially at financial firms that still have government loans, is playing with fire. The most talented employees will simply leave for companies that have no such restrictions, leaving their former employers floundering.

Pay czar Kenneth Feinberg appears ready to throw the cautionary comments about the migration of Wall Street talent to the wind. He will restrict large base pay packages and force bankers at firms that still owe money from various government bailouts to take more compensation in the form of stock, which they will then have to hold on to for several years.