TITLE

EXECUTIVE COMPENSATION AT BANKS RECEIVING FEDERAL ASSISTANCE UNDER THE TROUBLED ASSET RELIEF PROGRAM (TARP)

AUTHOR(S)
Winkelvoss, Clayton M.; Amoruso, Anthony J.; Duchac, Jonathan
PUB. DATE
June 2014
SOURCE
Journal of Legal, Ethical & Regulatory Issues;2014, Vol. 17 Issue 2, p37
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The recent recession in the US economy was triggered by a severe financial crisis that threatened a collapse of the American banking system. The banking industry has subsequently faced intense political and regulatory scrutiny, with one of the primary targets being executive compensation. As a result, limits were placed on executive pay at banking institutions bailed out by the federal government under the 2008 Troubled Asset Relief Program (TARP). This paper reviews the contractual issues affecting the compensation of bank executives and analyzes the compensation policies of the largest banks receiving government bailout money under TARP. We report that CEO pay, particularly incentive compensation in the form of bonuses and stock- based compensation, decreased markedly following the bailout. Thus, it appears that compensation was reduced at most TARP recipient banks following the government bailout of the banking industry.
ACCESSION #
100277208

 

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