Caps are a misguided attempt to ensure accountability. They do nothing to ensure pay back since A) many of these executives can leave and get non-exec jobs; B) many of the institutions may still fail; C) there is no tie to specific performance that ill ensure payback is made in a responsible manner.
A better solution would be to tie compensation to specific goals. The goals should be relevant to the institution. Each of the TARP recipients needs to do something different to get back into the black. Some of them will need months, others will need years.
