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Institute for Policy Studies

Report Info

  • Released October 15, 2008
Inequality and the Common Good » Report

Analysis of Treasury Department Rules on Executive Compensation for Bailout Firms

Treasury Department's new rules clarify some provisions in the bailout but fail to set monetary limits for CEO pay.

On October 14, 2008, the Treasury Department issued rules for executive pay for firms participating in the government’s financial sector bailout. These rules clarify some provisions of the bailout legislation, but reinforce the law’s major shortcoming: the failure to set any specific monetary limits on the pay of top executives at bailed-out companies.