Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Treasury Department's Guidelines on Executive Pay

By Angela Marie Hubbell

President Obama and Treasury Secretary Timothy F. Geithner stood together on Feb. 4, 2009, to announce the Treasury Department's new set of guidelines restricting executive compensation at financial institutions that receive governmental money. In his announcement, President Obama called the bonus payments made to senior executives in late 2008 by major financial firms that received bailout money “shameful and intolerable.” He indicated that the new Treasury guidelines were issued to ensure public funds are directed toward the public's interest in stabilizing our economy and are designed to align compensation of senior executives in the financial industry with interests of both shareholders and taxpayers.

Specifically, the guidelines indicate that they were designed to strike a balance between the financial industry's need to attract top talent to lead in the current economic climate and the public's interest in requiring transparency and accountability. The guidelines require not only disclosure of but an explanation and justification of the policy supporting certain compensation decisions. The guidelines are divided into two broad categories: 1) compliance and certification; and 2) limits on executive compensation.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?