Treasury Secretary Timothy Geithner testified before the House Financial Services Committee today, primarily a public scolding where Brad Sherman (D.- California) criticized his handling of AIG and its bonuses.

On the topic of executive compensation broadly, Geithner said:

"I do think it is appropriate to put in place strong standards that govern compensation" broadly, but cautioned that the government "should not be setting precise, detailed amounts of compensation and distribution."

Part of the strong standards for compensation could be encouraging better bonus incentives for risk-managers and auditors in order to attract the best talent to those departments of the company, Geithner added.