Global Restrictions on Compensation?

In this article, the New York Times reports on a recent agreement between French bankers and their government on restricting bonus payments.

Unfortunately, in the EU such 'agreements' can become precedent for a law if Brussels believes it good for politics. After all, what's the indignation of a few bankers compared to the ire of the unwashed masses?

The concern for us should be that such populist notions will spread across the Atlantic and hamper the ability of our financial institutions to hire the best talent, for which we have been in a global war for the last 25 years. There is already a movement in Congress to restrict executive compensation. What our leaders do not seem to realize is that brain drain is a real problem - ask the Canadians - and can degrade the long term capacity of a country to innovate and improve its standard of living.