Treasury Exec Comp Rules

The Treasury has posted new executive compensation rules for TARP institutions. In addition to pulling the emergency brake on the whole excessive-executive-compensation thing, the Treasury release gives us new terms to learn: "generally available capital access" and "exceptional assistance." To quote:

The guidelines distinguish between banks participating in any new generally available capital access program and banks needing "exceptional assistance."

Banks falling under the "exceptional assistance" standard have bank-specific negotiated agreements with Treasury. Examples include AIG, and the Bank of America and Citi transactions under the Targeted Investment Program.

Executives at exceptional assistance banks:
* can't make more than $500,000 total except for restricted stock (which doesn't vest until the government gets its money back)
* are subject to "say on pay"
* are subject to clawback for deceptive practices
* must get board approval for "luxury expenditures"

Executives at generally available capital access banks (GACAB?) get a slightly easier time:
* their $500,000 cap can be waived by shareholder vote

Who's going to bail out Lear Jet?