It’s hard to assess whether the Richter scale registered higher in Washington or New York after the financial earthquake on Monday, September 29.

The House of Representatives’ narrow 228-205 rejection of a rescue package for the financial markets sent the Dow Jones industrial average down 777 points. The tremors in Washington were even stronger.

Enough House Democrats and Republicans in competitive re-election bids rejected their party’s leadership—and for Republicans it also meant dissing the White House—to deliver a potential body blow to the economy. The kind of bipartisan cooperation surrounding the bailout measure rarely fails.

Proponents said the grave problems facing financial institutions would impact Americans’ daily lives. Americans would no longer be able to get auto, car or business loans, for instance. Their retirement savings would be at risk.

That argument didn’t work. What members of Congress—especially those in vulnerable seats—heard from constituents was anger. It was the raw, amorphous frustration that often lights up the phones in Capitol Hill offices.

The primary focus of Main Street’s ire was wealthy Wall Street CEOs who richly benefit even when their firms crash. Americans struggling through the sluggish economy just don’t accept that outcome. 

“People have an image that this money is going to support executives on Wall Street, and what we’re really trying to do is to fix a systemic problem in our economy,” said White House spokesman Tony Fratto in a September 29 briefing.

Initially, Fratto’s boss didn’t even want to put executive compensation into the bailout package. The first proposal from the administration was three pages.

Congress quickly rejected the idea of authorizing with no strings attached up to $700 billion in tax dollars for the purchase of bad mortgage-based assets. After more than a week of negotiations, the bipartisan legislation grew to 110 pages.

It now includes congressional and judicial oversight, relief for homeowners and assurances that the government would be able to profit from the sale of assets that regained their value.

One of the most politically persuasive additions to the measure was limits on executive compensation for firms participating in the bailout.

“The party is over,” House Speaker Nancy Pelosi, D-California, said at a September 28 Capitol Hill press conference. “The era of golden parachutes for highflying Wall Street operators is over.”

Congressional leaders vow that they will try again to pass a rescue package. Rest assured that it will contain executive pay restrictions.

The business community is wary. They argue that boards of directors should make the decision on remuneration based on industry factors and market signals. They say that pay parameters would add a regulatory burden and make U.S. companies less attractive for the best global executives.

If that talent is so valuable, then Wall Street needs to do a better job of demonstrating how it helps Main Street. It has to link high 401(k) returns to brilliant decisions made by leaders of financial companies.

Once again, this is a situation where the cloistered corporate mentality has to loosen up—communicate with everyday Americans about why the CEO is so important.

If companies don’t make this case, then the executive pay reform in the bailout bill is just the beginning. Next year, expect Congress to take another bite out of exorbitant corporate paychecks.