Time to Sell the Jet

Fresh off the AIG bonus debacle, the Obama administration is set to announce a push this week for a major overhaul of regulations surrounding executive pay at banks, Wall Street firms, and other businesses. While details are scarce, one proposal is to require company boards to tie bonuses and other payouts more closely to performance and give the Fed more far-reaching abilities to intervene. In addition, the new restrictions are intended to rein in the complicated derivatives market that helped cause the economic crisis by making it more transparent and tightly regulated. CEOs everywhere are anxiously awaiting the full proposal as they debate which vacation home they could do without if necessary.