Employers have virtually no discretion over granting additional funded benefits in areas such as health care and retirement, and they are usually hemmed in regarding salary or target bonuses, based on internal compensation equity, he says.

FORBES: If You Can't Get More Money, Get More Perks

Charles Grassley, R-Iowa, says that if automakers do get government aid, it should come with significant strings attached--including restrictions on executive compensation and excessive internal company spending.

FORBES: Magazine Article

"While we don't typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company, " he said.

WSJ: Google to Give Staff 10% Raise

Compensation should instead be based on phantom stock values, calculated by an independent internal unit.

FORBES: Sarbox Says: Dodd-Frank Will Fail

Two days ago, Forbes first reported that Morgan Stanley had been served earlier with a subpoena by Massachusetts Secretary of the Commonwealth William Galvin seeking details of its variable annuity sales, including revenue-sharing arrangements, compensation, whether the products receive preferred sales treatment, commission schedules, prospectuses and documents for internal use only (see: " Morgan Stanley Subpoenaed Over Annuity Sales").

FORBES: Morgan, Merrill Face Lawsuits Over Annuities

The Internal Revenue Service says it is examining both corporate and executive tax returns for abuses in eight areas of executive compensation, including fringe benefits.

FORBES: The Lending Game