Anyone scratching their heads over executive compensation can be forgiven for being a bit puzzled. These days, it’s hard to keep track of who owes what, which executives are getting a fat bonus, and what might happen if government bailout money reaches bankers’ pockets.

The Wall Street Journal sparked more debate today in a report outlining that the same financial giants getting cash infusions contractually owe executives more than $40 billion in deferred pay, including bonuses.

Now banks are grappling with how to retain and attract top talent without setting off a storm of criticism by angry taxpayers and regulators alike.

Most recently, Rep. Barney Frank issued a dire warning on banks’ use of government money, saying: “Any use of the these funds for any purpose other than lending — for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc. — is a violation of the terms of the Act.”

Meanwhile, the job situation got a little grimmer today. How grim? Enough that a major Wall Street lobby group had to lay off 25 percent of its staff as the financial crisis spreads.

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NEW DELHI, Sept 24 (Reuters) - State-run bank employees began a two-day strike on Wednesday protesting delay in wage increases, the head of a workers union said, affecting foreign exchange trading volumes.

Bank unions representing about 900,000 employees of 26 government-run banks went on strike after talks between government officials and Indian Banks’ Association failed on Tuesday.

“Strike has been successful and banking services across the country are paralysed,” said C. H. Venkatachalam, Convenor of United Forum of Bank Unions (UFBU) and General Secretary of All India Bank Employees’ Association.

About 60,000 branches including those of country’s largest lender State Bank of India have been closed, he said.

Foreign exchange trading was hurt as state-run banks, who command more than 50 percent of Indian banking assets, stayed away, senior dealers at three banks and a union leader said.

Volumes were significantly lower than average, resulting in higher volatility in the market, foreign exchange dealers said.

Bond market volumes were not affected much, they added.

Private sector banks and foreign banks functioned as usual.

(Reporting by Manoj Kumar and Swati Bhat; Editing by Ramya Venugopal)