Revised Executive Compensation Requirements For Participants Under The Troubled Assets Relief Program

On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 ("ARRA"), widely described as the Stimulus Bill. President Obama is expected to sign ARRA into law shortly, and the following summary assumes that ARRA will become law. ARRA significantly expands the executive compensation requirements previously imposed under the Emergency Economic Stabilization Act of 2008 ("EESA"), which established the Troubled Assets Relief Program ("TARP"). ARRA's executive compensation restrictions apply to any entity that has received or will receive financial assistance under TARP (a "TARP Recipient"), and generally will continue to apply for as long as any obligation arising from financial assistance provided under TARP remains outstanding (the "TARP Assistance Period").¹