FEE’s Sheldon Richman has an excellent analysis of the feds dictating executive compensation here.  Apparently, these guys have not read Hayek’s  article “The Use of Knowledge in Society.” If they had, they would not be so arrogant. It reminds Richman of “the pretense of knowledge.”

In what the Wall Street Journal calls ?a watershed moment
for government intervention in the private sector,? the Federal Reserve
announced yesterday it will regulate executive compensation at all
banks so that they will not have incentives to take on too much risk.
Fed chairman Ben Bernanke said his purpose is ?to ensure that
compensation packages appropriately tie rewards to longer-term
performance and do not create undue risk for the firm or the financial