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.