Administration, Congress seek to rein in exec pay

WASHINGTON (AP) _ Some Democratic lawmakers are saying the Obama administration's approach to reducing executive compensation doesn't go far enough.

The administration rejects direct intervention in corporate pay decisions. Instead, it plans to seek legislation that would try to rein-in compensation at publicly traded companies through nonbinding shareholder votes. Congressman Brad Sherman wants to do more. Instead of giving shareholders a nonbinding voice on pay, he says, their votes should be binding on boards of directors.

But Republicans say the administration's plan goes too far. Alabama's Spencer Bachus, the top Republican on the House Financial Services Committee, says, "We need to get government out of businesses.'' In testimony today to the panel, a counselor to Treasury Secretary Timothy Geithner said  administration guidelines call on all publicly held companies to link compensation to long-term performance, not short-term gains.