EESA Executive Compensation Guidance

Attached is a summary of Treasury guidance issued to date on the executive compensation restrictions that apply to financial institutions participating in the Capital Purchase Program (CPP) under the recent “bailout” legislation. While these rules are of immediate interest to banks and other potential participants in the CPP, many are concerned that Congress will try to impose these or similar restrictions on many more companies in the future so it may be helpful to be generally familiar with them.