The Treasury Department and President Obama today announced new guidelines on executive pay for financial institutions that receive financial assistance.
What is very important to note is that the guidelines clearly distinguish between banks participating in any new generally available capital access program and banks needing or that needed "exceptional assistance.
"Generally available programs" are those programs that have the same terms for all recipients, with limits on how much may be received and specified taxpayer returns whereas "exceptional assistance" means assistance provided as a result of bank-specific negotiated agreements with Treasury. Cited examples include the AIG transaction and subsequent B of A and Citibank supplemental assistance packages.
The new standards for "generally available programs" will not apply retroactively to existing investments or to programs already announced such as the Capital Purchae Program and the Term Asset-Backed Securities Loan Facility.
More information can be found by clicking on the following link:
http://www.treas.gov/press/releases/tg15.htm
For questions, contact Allyn Dixon at 515.246.4520 or at adixon@dickinsonlaw.com.
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