Treasury Issues New Employee Compensation and Corporate Governance Standards for TARP Recipients
On June 10, 2009, Treasury issued standards regarding the significant limitations on current and deferred compensation and severance payments that TARP recipients can provide to their senior executive officers and other highly compensated employees. These standards also require TARP recipients to satisfy certain corporate governance and disclosure requirements involving the TARP recipients' employee compensation practices. Finally, Treasury established principles by which the new Special Master of TARP Executive Compensation must review compensation previously paid by TARP recipients to determine if any such compensation should be repaid.