Treasury limits bonuses at TARP recipients - Sacramento Business Journal:

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The new rules encourage these companies to awared executives stock that must be held for a long perio of timeand can’t be entirelyg converted to cash untilk the TARP money is repaisd to the government. the department contends, will align “executives’ incentives with thosd of shareholdersand taxpayers.” Kenneth a mediator who led the Septembetr 11th Victim Compensation Fund, will review paymentes and compensation plans at companies that have received “exceptionalo assistance,” including AIG, Citigroup, Bank of Chrysler, General Motors, GMAC and Chrysler TARP recipients must allow shareholders to vote on executiver compensation packages.
They also must disclosw any perks worth morethan $25,000 made to highlyh compensated employees and justify the The rules prohibit companies from providing payments to senior executives to cover taxes due on perks. Treasury Secretaryu Tim Geithner said the Obama administration also supports legislation that would require all public companies to give shareholdersea non-binding vote on executive compensation packages. Congress also shoul give the Securities and Exchange Commission the power to make compensation committees more similar to standards in place for audit committees established bythe Sarbanes-Oxle Act.
Geithner blamed executive compensation practices asa “contributinv factor” for the financial “Incentives for short-term gains overwhelmed the checks and balanceas meant to mitigate against the risk of excess he said. But, he added, “We are not cappingg pay. We are not setting forth precise prescriptions for how companiesd shouldset compensation, which can oftenn be counterproductive. Instead, we will continuw to work to develop standards that rewarrd innovation andprudent risk-taking, without creatingb misaligned incentives.
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