Further, Feinberg must determine the compensation structure for the next highest-paid group of company officials - numbers 26 through 100 - from the seven corporations. He does not set individual compensation for this second group of employees, but rather has to design, and make public, the compensation regimen that will be used to fix their pay packages.
Finally, he has the discretion to seek clawbacks from any companies that received TARP funds, not just the largest seven. That means he can force individuals to return any compensation, bonuses, commissions, or other forms of payment that he deems to be contrary to the public interest. He emphasized, however, that the clawbacks are not mandatory.
Feinberg and his 15-person staff must also take into consideration several guiding principles when establishing pay. For example, he must consider the competitive marketplace to make sure that the levels of compensation he sets are comparable to those of other executives in similar situations. In addition, he must also think about the need for performance-based pay. That is, he must consider designing pay packages that tie compensation to prospective performance.
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