Executive Compensation Limitation Regulations Released
Oct. 16, 2008 — In accordance with the provisions laid out in the Emergency Economic Stabilization Act (EESA), the Department of the Treasury has released the interim final regulations dealing with the limits on executive compensation for companies that participate in the program.
The two sets of interim regulations, one specifically for the Capital Purchase Program and another for the other two programs under the Troubled Assets Relief Program (TARP), are designed to encourage companies to participate in TARP by providing guidance on the executive compensation provisions applicable to participants.
Both sets of regulations are in question-and-answer format and each outline and define the areas in which they provide guidance. The Treasury Department is currently soliciting comments on the interim regulations through www.regulations.gov.
Good to have the real thing. I posted a comment to Treasury questioning why restrict the application to the top 5 and re-create the wheel with new language when a perfectly excellent IRC 4958 could be extended to all execs and advisors of bailed-out enterprises. That would cover all insiders, their enablers and advisors, with open-ended disgorgement provisions and personal liabilities for excess benefit transactions of any kind.