Congress Trumps Obama by Cuffing Bonuses for CEOs

According to The Washington Post, congressional Democrats included in the stimulus a measure limiting executive compensation at banks receiving TARP funds much stricter than the one Obama revealed last week. The provision limits executive bonuses to one-third of their base salary, and mandates that such bonuses be issued in stock that cannot be redeemed until the government has been repaid. Unlike the Obama limit, the restriction forces all 359 banks that have already received TARP funds to comply by making them vote on either accepting the measure or returning the government funds. Also, at banks receiving more than half a billion dollars in bailout money, the restrictions will cover the top five executives and the 20 highest-paid employees.

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