REDDY SET GROW: A briefing for financial institutions

The issue of compensation for executives of firms that have received government support during the financial crisis. The American Recovery and Reinvestment Act of 2009 (Title VII of P.L. 111- 5) restricts the compensation of executives of companies during the period in which any obligation arising from financial assistance provided under the Troubled Assets Relief Program (TARP) remains outstanding and requires the Secretary of the Treasury to develop appropriate standards for executive compensation. 41 Some proposals, dubbed “say on pay,” would give shareholders a greater voice in compensation and governance decisions. Among legislative initiatives, S. 1074 would provide for greater influence by...