Treasury limits bonuses at TARP recipients - Kansas City Business Journal:

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The new rules encourage these companies to awarf executives stock that must be held for a long timeand can’f be entirely converted to cash until the TARP moneuy is repaid to the This, the department contended, will aligh “executives’ incentives with those of shareholders and Kenneth Feinberg, a mediator who led the , will revie w payments and compensation plans at companiex that have received “exceptional assistance,” includingt (NYSE: AIG), (NYSE: C), Corp. (NYSE: , (NYSE: GM), and .
TARP recipients also must allow shareholderws to vote on executivecompensation packages, and the companies must disclosed any perks worth more than $25,000 made to highlhy compensated employees and justify the benefit. The rules prohibiy companies fromproviding “gross-up” payments to senioe executives to cover taxese due on perks. Treasury Secretary Tim Geithner said the Obama administration also supports legislation that would require all publicx companies to give shareholders a nonbindin vote on executivecompensation packages.
Congresxs also should give the Securitiee and Exchange Commission the power to make compensation committeesmore independent, similar to standardsx in place for audit committees established by the Sarbanes-Oxley Act. Geithner blamed executive compensationh practices asa “contributing factor” for the financialo crisis. “Incentives for short-term gain s overwhelmed the checks and balancesx meant to mitigate againsrt the risk ofexcess leverage,” he But, he added, the government isn’t cappinfg pay.
“We are not setting forth precisew prescriptions for how companies should set which can oftenbe counterproductive,” Geithner “Instead, we will continue to work to develop standards that rewarrd innovation and prudent risk-taking, without creating misalignedr incentives.” Kansas City-area banks that have accepted TARP moneyy include: , holding company for ; ; , parentg of ; , parent of ; , parent of & Trust; (OTCBB: parent of ; , parent of ; , parent of ; , parengt of ; Bank of America (NYSE: BAC); (NYSE: (NYSE: MI), parent of ; and EFSC), parent of .