Executive compensation was once a matter of vanilla corporate governance. Each industry practiced standards among peer companies, and the details of how an employee was compensated was newsworthy only as a matter of competitive comparison. The ongoing economic crisis, however, has transformed the issue into an outlet for public catharsis, the subject of political rhetoric and a bogeyman for frailties in the economic system. Draft legislation proposing new ways of re-regulating the matter offers powerful incentives for companies to alter their internal compensation structures. Legislative consensus aligns pay with performance, tying compensation to the long-term stability of the company and the larger financial system. This article will explore some of that re-regulation, as well as some of the current litigation over executive compensation.
EXECUTIVE PAY RESTRICTIONS IMPOSED UPON TARP RECIPIENTS
