Executive Compensation Under Scrutiny
3/3/2009

Stoel Rives attorney Steven Hull discussed in The National Law Journal changes in company executive compensation strategies, following implementation of new U.S. government compensation rules for companies receiving Troubled Asset Relief Program (TARP) funding and a revenue crunch caused by the ongoing economic crisis. The government bailout rules place a $500,000 cap on tax deductions for each executive salary and a ban on most types of bonuses for a certain number of executives. TARP also bans so-called "golden parachute payments" and subjects executives to claw backs for any incentive compensation based on financial results that subsequently proved inaccurate.

Hull said a number of companies are changing executive salaries or other compensation because of their own financial challenges. "What I'm seeing more than anything is that [companies] have cash flow issues and are cutting back salaries at least temporarily for executives."

Read the National Law Journal article

"Companies Seek to Alter Bonuses, Compensation" was published by the The National Law Journal, March 3, 2009.