Executive Compensation Provisions in the Emergency Economic Stabilization Act of 2008

By: Laraine S. Rothenberg, Donald P. Carleen, Amy L. Blackman, Mindy P. Meyers, Todd McCafferty, Jeffrey Ross

Last Friday, President Bush signed the Emergency Economic Stabilization Act of 2008 (the "Act"). The Act imposes on financial institutions new executive compensation and corporate governance standards and amends the deductibility limits and golden parachute provisions under the Internal Revenue Code. The standards the Act impose differ based on whether the Secretary of the Treasury directly purchases troubled assets or whether such assets are purchased through an auction.

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