The Obama Administration issues new regulations and appoints a pay czar to oversee compensation at some of the nation’s largest companies that took bailout money. We take a closer look at the plan and what it could mean for future salaries.
23 News Banking Expert Rick Bastian says the regulations deal with top executives of companies who received TARP money. They cannot get bonuses more than one-third of their salaries. TARP recipients are categorized in two groups, based on how much they received. The toughest restrictions are aimed at those who got the most help, like Bank of America, Citigroup and AIG. The plan also requires these companies to address the issue of extravagant expenditures. Bastian says that could lead to broader reform when it comes to pay decisions at public companies.
The companies that have already paid back their TARP money are not subject to the new rules.