US govt 'eyes curbs on finance firm pay'

WASHINGTON: The Obama administration has commenced discussions on an initiative to change compensation practices in the financial-services industry, even at companies that were not recipients of federal bailout money, the Wall Street Journal reported yesterday, citing people familiar with the matter.

The plan aims to broadly address the way financial companies pay employees and executives and also includes an attempt to more closely align pay with long-term performance, the paper reported.

Options being considered by the administration and regulatory officials include using the Federal Reserve's supervisory powers, the power of the Securities and Exchange Commission and moral suasion, the paper said, adding that officials are also looking at what could be done legislatively.