Compensation overhaul might be counterproductive

Terms of the government's Troubled Asset Relief Program are forcing big banks to rethink the way leading performers are compensated. "It's kind of ironic in a way, because over the last 10 years, everybody has been pushing for pay for performance," said Michael Melbinger of Chicago's Winston & Strawn. "Now, with TARP, it is 180 degrees the other way." Experts said the revamp of compensation structures might prove to be counterproductive in the long run.

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