Although the stimulus bill is getting a lot of attention for its infrastructure spending and tax cuts – one lesser known area could soon grab headlines.
As part of the stimulus legislation, lawmakers have restricted bonuses and other forms of pay for top managers at banks and companies getting TARP money.
The curbs were drawn up by Sen. Christopher Dodd, chairman of the Senate Banking Committee.
According to the Washington Post, “under the new rules, bonuses for executives at all financial institutions receiving government funds are limited to no more than a third of their annual compensation. The bonuses must be paid in company stock that can be redeemed only after the government investment has been repaid.”
Remember, this provision is in the stimulus package – not the new TARP rules from the Treasury which already had set a $500,000 cap on executive pay and imposed other restrictions.
And those rules were not retroactive. Dodd's provision would affect all TARP recipients, past and future.
And that leads to our Fast Money Reader Poll. Do you agree with the decision to attach strings to TARP money both past and future?
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CNBC.com with wires