Treasury Department Ruling
Standards for TARP Recipients
On June 10, 2009, the U.S. Treasury Department issued an interim final rule on Standards for Compensation and Corporate Governance under the Troubled Assets Relief Program (TARP). The following is a summary of that rule. Limitations on Executive Compensation The interim final rule establishes certain standards for executive compensation practices at firms receiving TARP assistance, in order to fully protect the interests of taxpayers and mandate compensation practices that maximize the value of the firm for shareholders. Limits Bonus Payments to Senior Executive Officers and Highly Compensated Employees to Protect Taxpayer Investments. The new regulations limit bonuses paid to senior…
