American Recovery and Reinvestment Act of 2009: Restrictions on Employee Compensation Arrangements of TARP Recipients
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009. The Act contains significant limitations on the compensation and severance payments that current and future TARP recipients can provide to their senior executive officers and other highly compensated employees. The Act requires the Treasury Secretary to establish standards regarding these limitations and to review prior compensation paid by TARP recipients, and requires TARP recipients to satisfy certain other requirements involving employee compensation practices.