International Wage Controls?

After the economic burst of last year, there is a new focus upon finding a new balance between the free markets and the governments that must regulate them. The article I discuss here can be found from BBC World at the following link. In summary, the EU has agreed that it will focus on its agreed upon position that bonuses paid to employees should be proportional to their incomes. Therefore, it incomes fall, bonuses should follow. The EU will argue for this agreement at the next G20 summit and they will speak as a block, making theirs a very strong stance. There is no clear cut position being issued by the United States but President Obama has made it clear that he does not want there to be any set caps on bonuses. The opinion of the BBC is that this proposal will be accepted by the G20 but that it will be more of a wide set of guidelines rather than set rules regarding pay. There is often much reservation when it comes to governments becoming involved in the internal actions of businesses. More free market economists, such as Joseph Stiglitz, would most definitely not be happy with such an action, even though Stiglitz does speak of the need for the government to act as an enforcer of contracts and a power that will ensure that business will continue uninhibted and without cheating. At this point, with banks having obviously operated in a greedy manner without proper thought as to potential consequences, can even these free-market supporters such as Stiglitz support a proposal to force companies to conform to the overall business cycle? What is the right thing to do? Is this simply a period of re-regulation which will inevitably be followed by one of deregulation to bring the world back to balance?