Stimulus Plan Places New Limits on Wall St. Bonuses

But some experts on executive compensation warned that the restrictions could unleash unintended consequences, like encouraging banks to increase salaries to make up for diminished incentive pay. Even then, they warned, banks were likely to lose top talent.

“These rules will not work,” James F. Reda, an independent compensation consultant, said on Friday. “Any smart executive will (a) pay back TARP money ASAP or (b) get another job.”

On the one hand, it's hard to imagine these compensation restrictions effecting much, if any positive change. On the other hand, losing "top talent?" The same talent that steered Wall St. banks in the boom? If that's the case, good riddance!