One of the least attractive elements is a section designed to curb executive pay at banks that participate in the bail-out package. These include limiting stock-related pay and banning 'golden parachutes' for executives.
New Law Seeks to Limit Executive Compensation
Experts Call Broader Pay Reform Unlikely
By Heather Landy
Special to The Washington Post
Saturday, October 4, 2008
In the first significant attempt by Congress to legislate executive pay, the $700 billion financial rescue plan signed into law yesterday includes efforts to rein in the use of "golden parachutes," banning the giant windfalls in some cases and imposing bigger tax penalties in others.
But executive pay experts said the regulations are too weak to spark major reform in the way companies compensate top officers, and too narrow in scope to change the pay structure that encouraged finance executives in boom times to take on enormous risks.
Graef Crystal, a longtime executive pay consultant who now runs a Web site devoted to compensation issues, said there is ample room for companies to maneuver around the new restrictions on golden parachutes, the parting packages often awarded to executives upon a change in control of their companies. And the alternatives offered to attract executives, such as outsized signing bonuses or bigger base salaries, can also short-change shareholders, he said.
Bailout package unlikely to significantly curb executive pay
By Edward Iwata, USA TODAY
High pay and "golden parachutes" for poor-performing executives in finance and other industries still is a big issue, but the bailout bill passed Friday by the U.S. House likely won't rein in overpaid Wall Street moguls.
Compensation consultants who work with companies on pay packages say the bill's sections on executive compensation are so broadly and vaguely written that executives and companies will create dozens of new ways to boost leaders' pay anyway.
The bill bans golden parachutes for some executives of financial firms involved in the bailout, limits their stock-related pay and allows so-called "clawbacks" ? the government can recover pay if executives later are found to have engaged in fraud or questionable actions.
The bill also lowers the cap on federal corporate tax deductions for executives' pay to $500,000 from $1 million. Under the current tax code, companies cannot deduct executives' pay above $1 million, unless the pay is pegged to performance measures such as earnings. ...
このｻｲﾄの記事はすべてPDFになっています｡Executive Pay Controls -- Bad Idea Then, Bad Idea Nowという記事が詳しいです(ひょっとしたら質問者さんが今知りたいこととは違う方向に行っている記事かもしれませんが)｡ﾎﾟｰﾙｿﾝ現財務長官のｺﾞｰﾙﾄﾞﾏﾝ･ｻｯｸｽでの役員報酬についての細かなﾃﾞｰﾀを核にして､｢自分は1970年からこの世界を見てきているが､議員だの官僚だののすることは問題を悪化させるだけだった｣といったことが､歯切れがよく読みやすい口調で書かれています｡(現状､ざっと目を通しただけですが､あとでゆっくり読みたいと思います｡)