In a sign that Wall Street is waking up to the political tempest over billions of dollars in year-end bonuses likely to be paid out at securities firms lining up for government infusions, top executives are in discussions to possibly cap their own compensation, according to people familiar with the situation.

While the discussions remain fluid and many details still must be agreed to, the talks underscore an emerging consensus among some of the securities industry's most powerful executives that the escalating pay controversy is creating yet another public-relations mess for Wall Street.

"There are going to be some people in the financial-services industry who will show real leadership here and recognize the reality of the situation," one senior Wall Street official said.

At least one major firm has looked at former PepsiCo Inc. Chairman and Chief Executive Roger Enrico's move in 1998 to give up his $900,000 salary. Instead, Mr. Enrico asked PepsiCo directors to fund scholarships for children of "frontline employees." Mr. Enrico still got a $1.8 million bonus that year.

And as Wall Street firms examine their pay and bonuses, distinctions are being made between the highest-ranking executives and lower-level traders and investment bankers who aren't widely known beyond Wall Street but could get plucked away by rival firms if compensation practices are significantly altered.