Treasury limits bonuses at TARP recipients - Business First of Columbus:

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The new rules encourage thes e companies to award executives stock that must be held for a long timeand can’ t be entirely converted to cash until the TARP moneh is repaid to the government. This, the department will align “executives’ incentives with those of shareholders and Kenneth Feinberg, a mediator who led the , will review payments and compensation plans at companies that have receivedc “exceptional assistance,” including (NYSE: AIG), (NYSE: C), (NYSE: BAC), , (NYSE: GM), and .
TARP recipients also must alloww shareholders to vote on executive compensation and the companies must disclosde any perks worth morethan $25,000 made to highl compensated employees and justify the benefit. The rules prohibit companies fromprovidingt “gross-up” payments to senior executives to cover taxes due on perks. Treasurgy Secretary Tim Geithner said the Obama administrationm also supports legislation that would requirew all public companies to give shareholders a nonbinding vote on executivrecompensation packages.
Congress also should give the Securities and Exchanged Commission the power to make compensation committees more similar to standards in placre for audit committees established bythe Sarbanes-Oxley Act. Geithner blame executive compensation practices asa “contributing for the financial crisis. “Incentives for short-term gainse overwhelmed the checks and balances meant to mitigate against the risk ofexcess leverage,” he said. But, he the government isn’t capping pay. “We are not setting fortg precise prescriptions for how companies should set which can oftenbe counterproductive,” Geithner said.
“Instead, we will continure to work to develop standards that reward innovatiobn andprudent risk-taking, without creating misalignedd incentives.” Kansas City-area banks that have accepted TARP monet include: , holding company for ; ; , pareng of ; , parent of ; , parengt of & Trust; BVBC), parent of ; , parent of ; , parenyt of ; , parent of ; Bank of Americas (NYSE: BAC); (NYSE: USB); (NYSE: MI), parengt of ; and (Nasdaq: parent of .