Employment Law Updates | New Proposed Legislation
October 23, 2009
Legislative Effort Seeks to Curb Excessive Compensation at Bailed-out Companies
Compensation Fairness Act of 2009
S. 651, 3/19/2009
Senate Finance Committee Chairman Max Baucus (D-Mont.), ranking member Chuck Grassley (R-Iowa), Senator Ron Wyden (D-OR), and Senator Olympia Snowe (R-ME) have introduced the Compensation Fairness Act of 2009, a legislation to discourage excessive compensation by companies that have taken taxpayer funds, and recoup payments made to executives at recipient institutions of funds from the Troubled Assets Relief program (“TARP”).
For companies that received TARP funds, the legislation would impose a 35 percent excise tax on both employers and employees, on retention bonuses and other bonuses. The proposal would also put a cap on the amount of income employees of these…
To continue reading this article, subscribe now
It's FREE and only takes seconds
