Treasury Releases Additional Executive Compensation Guidance For TARP Capital Purchase Program

Article by Eric Adams, Shannon Anglin , Terra K. Atkinson, David J. Bryant, David R. Dlugie, Steven Eckhaus, Hays Ellisen, Mark I. Fisher, Andrew L. Jagoda, Jeffrey Patt, Jeffrey M. Werthan, Robert J. Wild and Frank Zarb,

On January 16, the U.S. Treasury Department (UST) released an interim final Rule¹ (Revised Rule) and FAQs² to provide additional requirements and guidance for all institutions receiving TARP funds under the Capital Purchase Program (CPP). The Revised Rule requires new CEO certifications as to compliance with the executive compensation limitations and provides a few clarifications to the October interim final Rule³ (Initial Rule). The Revised Rule amends and supplements the Initial Rule, which remains in effect. The Revised Rule will be effective upon publication in the Federal Register. However, it is not known at this point when the Revised Rule will be effective because of the Obama administration directive on January 20 suspending Federal