limit on executive pays in the banks?

I read this news and I was taken aback: Obama limits pays to top executives of bailed out banks to $500k. Taken aback because I thought Obama was more pragmatic than this. This is a popular move and not the "right" move. 

If you give peanuts, only monkeys will come. If Obama brings in such limits, he will not attract talent. Talent is required to carryout this job with certain dexterity; and such talent is scarce. He can definitely attract some academics such as Vikram Pandit. However, he won't be able to get the go-getters or the true mercinaries required to resolve this large mess. 

Wall St is used to pay for performance. Talent is hard to get. This talent is globally mobile. They will go to other nations and take up occupations there. Jim Rogers has moved to Singapore. Halliburton has moved its headquarters to Dubai. There is a reason why Reuben retired from Citi. He knew that the efforts put into Citi going ahead won't generate adequate returns.