Treasury limits bonuses at TARP recipients - Portland Business Journal:

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The new rules encourage these companies to award executivexs stock that must be held for a long periosd of timeand can’t be entirely converted to cash unti the TARP money is repaicd to the government. the department contends, will align “executives’ incentiveas with those of shareholdersand taxpayers.” Kennetu Feinberg, a mediator who led the September 11th Victim Compensation Fund, will review payments and compensation plans at companiesd that have received “exceptional assistance,” includinb AIG, Citigroup, Bank of Chrysler, General Motors, GMAC and Chryslet Financial.
TARP recipients also must allowe shareholders to vote on executiveecompensation packages. They also must disclose any perkz worth morethan $25,00p0 made to highly compensated employees and justify the benefit. The rules prohibit companies from providing payments to senior executives to cover taxes due on Treasury Secretary Tim Geithner said the Obamw administration also supports legislation that woulde require all public companies to give shareholderdsa non-binding vote on executivew compensation packages.
Congress also should give the Securitiesd and Exchange Commission the power to make compensatio n committeesmore independent, similar to standards in placwe for audit committees established by the Sarbanes-Oxle y Act. Geithner blamed executive compensatio practices asa “contributing for the financial “Incentives for short-term gains overwhelmed the checks and balances meant to mitigate against the risk of excesxs leverage,” he said. But, he “We are not capping pay. We are not settingt forth precise prescriptions for how companies should set compensation, which can often be counterproductive.
we will continue to work to develop standards that rewars innovation andprudent risk-taking, withoug creating misaligned incentives.”