Treasury limits bonuses at TARP recipients - San Francisco Business Times:

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The new rules encourage these companiesw to award executives stock that must be held for a long period of timeand can’t be entirelg converted to cash until the TARP moneu is repaid to the This, the department contends, will alighn “executives’ incentives with those of shareholders and Kenneth Feinberg, a mediatotr who led the September 11th Victim Compensation will review payments and compensatioh plans at companies that have received “exceptionaol assistance,” including , , , Chrysler, , and . TARP recipientd also must allow shareholders to vote on executivedcompensation packages.
They also must disclose any perks worthh morethan $25,000 made to highly compensatec employees and justify the The rules prohibit companies from providinv “gross-up” payments to senior executives to cover taxes due on Treasury Secretary Tim Geithner said the Obams administration also supports legislatioj that would require all public companied to give shareholders a non-binding vote on executivre compensation packages. Congress also should give the Securities and Exchange Commission the power to make compensation committees more similar to standards in place for audit committees establishedc bythe Sarbanes-Oxley Act.
Geithnere blamed executive compensation practices asa “contributing factor” for the financia l crisis. “Incentives for short-term gains overwhelmed the checksz and balances meant to mitigate againstg the risk of excess he said. But, he “We are not cappinfg pay. We are not settinv forth precise prescriptions for how companiez shouldset compensation, which can often be Instead, we will continue to work to develol standards that reward innovatioj and prudent risk-taking, without creatin g misaligned incentives.
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