On June 10 the U.S. Treasury announced some principles about executive compensation in the financial sector, and it landed squarely in the middle of the divide.

The new golden rules of compensation are as follows: “First, compensation plans should properly measure and reward performance; second, compensation should be structured to account for the time horizon of risks; third, compensation practices should be aligned with sound risk management; fourth, we should reexamine whether golden parachutes and supplemental retirement packages align the interests of executives and shareholder; finally, we should promote transparency and accountability in the process of setting compensation.”

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