The Emergency Economic Stabilization Act (P.L. 110-343), the financial sector bailout bill, was signed into law Oct. 3. The legislation places limits on compensation for certain executives at companies that benefit from the act.

In this article, attorney James Bristol, a partner at Waller Lansden Dortch & Davis LLP, Nashville, Tenn., discusses these restrictions and reviews the history of various executive pay proposals that may have influenced the bill's drafters and may also affect forthcoming regulations under the act. Mr. Bristol’s practice includes all areas of executive compensation and benefits, including the Employee Retirement Income Security Act and employee stock ownership plans.

This article addresses these provisions and their application to public and private companies. It also reviews the history of executive pay proposals in the context of what may be expected in future legislation. The article also briefly reviews the revenue raising provision of Title VIII, amending the tax code to tax deferred compensation paid by offshore entities.

James Bristol provides insight into various related topics including:

• Covered Executives and Compensation Disclosure for Securities and Exchange Commission Reporting Purposes
• Bailout Through Direct Purchase and How Institutions Must Meet Standards Covered Under §111 of the Act
• Bailout Exceeding $300 Million and How Companies Receiving More Than This Amount Must Face More Severe Restrictions
• Targeting Private Equity and Hedge Funds—Section 457A
• New Ideas Introduced Including Regulation of Executive Pay at Privately Held Companies and Covers History of Proposed Restrictions by Presidential Candidates and Activist Shareholders such as:
  • Corporate Governance
  • Say on Pay
  • Clawbacks
  • Golden Parachutes
  • Compensation Limits

…and more!

For more details:

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