Treasury Department’s New Pay Restrictions
New restrictions on executive compensation have been issued by the Treasury Department in an effort
...to strike the correct balance between the need for strict monitoring and accountability on executive pay and the need for financial institutions to fully function and attract the talent pool that will maximize the chances of financial recovery and taxpayers being paid back on their investments.
US Department of Treasury (TG-15) , February 4th, 2009
Essentially, companies that receive assistance through programs that are widely available to most firms and have pre-determined terms and conditions will not be affected. The Treasury Department identified the Capital Purchase Program as one such program in which participating
Week of January 12th
What's News is a regularly updated summary of news stories, typically related to compensation, that we are following, find interesting, or find baffling.
Week of January 12th…
- Robert Frank, a Cornell economist, discusses the possible unintended consequences of limiting executive compensation, something that is receiving increasing attention from shareholder activists and politicians. Limiting fixed executive compensation costs (i.e. base salaries) to a multiple of the broader employee population's base salaries has shown merit. However, the components of pay that link to performance should not be capped. We strongly believe all employees should be rewarded for creating shareholder value through meeting their performance objectives. And conversely, should not be rewarded when performance criteria are not met.
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Recent Posts
- American Bar Association Annual Meeting
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- Week of March 16th
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