Geithner may extend TARP curb on executive-pay deduction to all U.S. companies
Posted On: Jan. 23, 2009 4:36 PM CST
Neil Roland, Financial Week
WASHINGTON—Treasury Secretary-nominee Timothy Geithner said he might try to extend to all U.S. companies a restriction that prohibits banks getting bailout money from taking a tax deduction of more than $500,000 in pay for each executive.
The Troubled Assets Relief Program legislation enacted in October seeks to give companies receiving federal aid under the $700 billion rescue a number of incentives to curb what it calls excessive executive compensation.
Mr. Geithner, whose nomination was confirmed by the Senate Finance Committee and still has to be voted on by the full Senate, said he would consider "extending at least some of the TARP provisions and features of the $500,000 cap to U.S. companies generally."
He added that he also would consider extending to all U.S. companies "other rules beyond those potentially in effect."
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