The Bailout Bill on Executive Compensation
I’ve been watching out the braggy bailout bill, all 400-plus pages. You can scan it all here. One of the great debates was whether the bill should let in limits on executive pay but they’ve altered the wording since I in conclusion submited a look. Merely a week ago Congress was discussing placing a cap on excutive pay of $500,000 at any bank that betrayed assets to the Treasury. Forthwith the concluding version on a lower floor alleges no halcyon parachutes for the top five executives at firms who trade the Treasury more than $300 million worth of assets. Large difference. That’s politics.
SEC. 111. Executive compensation and incorporated governance.
(a) Applicability.—Any fiscal institution that trades carked assets to the Secretary under this Act shall be dependent to the executive compensation requirements of subsections (b) and (c) and the provisions under the Intragroup Revenue Code of 1986, as provided under the amendment by section 302, as applicable.
(b) Unmediated purchases.—
(1) In worldwide.—Where the Secretary finds that the purposes of this Act are best met through unmediated purchases of perturbed assets from an case-by-case fiscal institution where no bidding process or market prices are usable, and the Secretary experiences a meaningful equity or debt position in the fiscal institution as a result of the transaction, the Secretary shall demand that the fiscal institution conform to appropriate standards for executive compensation and incorporated governance. The standards required under this subsection shall be in force for the duration of the period that the Secretary holds up an equity or debt position in the fiscal institution.
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