Treasury Corrects Rules On TARP Executive Compensation Restrictions

The America Reinvestment and Recovery Act of 2009 (ARRA or the stimulus bill) was signed into law on February 17, 2009 and contained expansive new restrictions on executive compensation for financial institutions and other companies participating in the federal government's Troubled Asset Relief Program (TARP). (See our stimulus bill update.) (http://mcguirewoods.com/news-resources/item.asp?item=3740) Following the enactment of ARRA, the U.S. Treasury Department announced on June 10, 2009 a new interim final rule (TARP Regulations) implementing the executive compensation and corporate governance standards set forth in ARRA. (See our update.) (http://mcguirewoods.com/news-resources/item.asp?item=4045) The TARP Regulations consolidated and superseded all prior executive-compensation related guidance issued by the Treasury and became effective on June 15th.