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"I believe the structure of compensation is flawed," Mr. Frank said.
The Federal Reserve's examination is focusing on the structure of compensation arrangements, not their amounts, and the results have not been made public.
But the firms often focus on the structure of compensation and how tied it is to performance, not the absolute amount.
Walker responded by saying he was sympathetic to the view that some City bonuses were "egregiously high", but stressed it was not so much the level of pay but the structure of compensation that was the problem.
More recently, rules have made companies detail the size and the structure of compensation packages and have enforced transparency about the kinds of comparisons they rely on to determine salaries.
The Structure of Compensation Committees: The Bill would require compensation committees to be composed of only independent directors with very strict requirements for independence.
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JPMorgan Chase has still not disclosed the structure of its compensation arrangements in its London office, but the likelihood is that compensation must have been in line with standard proprietary trading compensation.
But the structure of the compensation requested by Mr. Schleyer and Mr. Cooper is also remarkable in several ways, according to Brian Foley, a compensation consultant based in White Plains.
One of those people said officials in the Treasury Department, then under Henry M. Paulson Jr., signed off on the size and the structure of the compensation plan.
While the structure of the compensation package and the amount of aid have yet to be defined, the European commission said on Monday it expected ministers to reach a provisional agreement at the Luxembourg summit.
As the Bank of France pointed out, the bonus plan complies with rules introduced in February at the behest of Christine Lagarde, the finance minister, to ensure that the structure of bankers' compensation does not encourage excessive risk-taking.
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