NEW ROUND OF EXECUTIVE COMPENSATION RESTRICTIONS FOR BANKS

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The Treasury Department has announced that it will be issuing new guidelines on executive compensation for financial institutions. Here is a brief summary of what the new rules are expected to1 do that is different from the executive compensation restrictions that were imposed in October 2008, as part of the implementation of the Emergency Economic Stabilization Act of 2008 (EESA) and the original Capital Purchase Program (CPP). (See our summary of those rules dated October 17, 2008.)

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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