What is ceo salary cap on new bailout package?

Under the www.cnn.com website, you can find the bill that the House defeated on Monday. Pages 31 and 32 identify the "appropriate standards for executive compensation and corporate governance" for those participants in the program.

There isn't any ceo salary cap in the plan. However, the Secretary of the Treasury is given authority as follows:

a) limits on compensation that exclude incentives for executive officers of a financial institution to take unnecessary and excessive risks that threaten the value of the financial institution during the period that the Secretary holds an equity or debt position in the financial institution.

b) a provision for the recovery of the financial institution of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains or other criteria that are later proven to be inaccurate and

c) a prohibition on the financial institution making any golden parachute payment to its senior executive officer during the period that the Secretary holds an equity or debt position in the financial institution.

3) Definition - For the purposes of this section, the term "senior executive officer" means an individual who is one of the top 5 execustives of a public company whose compensation is required to be disclosed pursuant to the Security Exchange Act of 1934 and any regulation issued thereundera and non-public company counterparts.

First answer by Dblord. Last edit by Dblord. Contributor trust: 38 [recommend contributor]. Question popularity: 1 [recommend question]