The U.S. Treasury Department issued regulations that limit bonuses for senior executives at companies that receive Troubled Asset Relief Program funds to one-third of their total compensation.Well, there it is.
The new rules encourage these companies to award executives stock that must be held for a long period of time and can’t be entirely converted to cash until the TARP money is repaid to the government.
This, the department contends, will align “executives’ incentives with those of shareholders and taxpayers.”
[ cf Treasury limits bonuses at TARP recipients ]
More of the same horror that is HORRIBLE!!!
I mean, what sort of Venture Capitalist would Impose Conditions on a Flailing Corporation while they are in a survival cram down!!!