The Senate adopted two amendments to the economic stimulus package Thursday that would rein in executive compensation at companies that have benefited from the Troubled Asset Relief Program.
An amendment from Sen. Claire McCaskill, D-Mo., would limit all forms of compensation, including salary, stock options, and other benefits, to $400,000 per year for all employees of bailout beneficiaries.
The Senate also approved an amendment from Banking Committee Chairman Chris Dodd, D-Conn., that would prevent Tarp recipients from paying bonuses or other compensation above regular salaries to the 25 highest-paid employees.
That amendment would also require the Treasury Department to determine whether any executive payments since Tarp was enacted were excessive, inconsistent with the program's goals, or contrary to the public interest. It would let the government claw back any bonuses or compensation based on inaccurate earnings. It also would require Tarp recipients to include on their annual proxy statements a "say on pay" proposal allowing shareholders to vote on the company's executive cash compensation.
