The new restrictions, described by one official familiar with the new rules were announced on Wednesday morning at the White House. The objectives of the phase of the administration of the inauguration next week of a new framework for spending the money that remains in the $ 700 billion financial rescue fund."If taxpayers are helping, then you have certain responsibilities that are not living high on the hog," President Barack Obama said Tuesday.
The official, speaking on condition of anonymity because the plan had yet been made public, said the more restrictive limits apply only to those who fight the big companies that received "exceptional" in the future. Healthy banks that receive capital infusions from the government would have more room to maneuver.
Companies that want to pay the managers above the threshold of $ 500,000 would be offset by actions that could not be sold or liquidated to repay to the government funds, the official said.
The president and members of Congress are weighing several proposals to restrict the executive heads of compensation as a condition of receiving aid under the $ 700 billion financial rescue fund. The desire of the boundaries was reinforced by the revelations of Wall Street firms paid more than $ 18 billion in premiums in 2008, even while struggling with economic recession.
Banks and other financial institutions that receive capital infusions, but are considered healthy, could waive the cap of $ 500,000 salary and stock Obama restrictions under the new rules. However, companies should disclose the compensation plan and submit the payment to shareholders in a non-binding vote.
The administration will also propose long-term compensation restrictions even for companies that receive no government assistance.
According to the official, the proposals include:
• Require senior executives of financial institutions to maintain a balance of several years before they can collect.
• Require non-binding "say on pay" resolution - that is, shareholders more say on executive compensation.
• A Treasury-sponsored conference to review the long-term compensation to executives.
Senior officials of companies that have received money from the government's Relief Program Troubled Assets and face some limits on compensation. However, elected officials want to put more caps.
"I know this: We can not say, 'Please, please,'" said Senator Claire McCaskill, D-Mo., Who has proposed that no employee of an institution that receives money under the $ 700 billion of federal rescue may receive more than $ 400,000 in total compensation is paid until the money.
The figure is equivalent to the salary of the president of the United States.
Compensation experts in the private sector have warned that this kind of intrusion into the internal decisions of financial institutions may discourage participation in the rescue program and slow recovery of the financial sector. They also argue that it could set a precedent for government regulation that undermines the performance-based pay.
"It is not a government takes," Obama noted in an interview. "Private enterprise will be carried out. But people are responsible and accountable."
Even some Republicans, angered by the decisions of the company to pay premiums while receiving aircraft purchase and help from the government, have few qualms restrictions.
"In ordinary situations where taxpayer money is not involved, we should not set executive pay," said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee.
"But if you have federal money involved, the taxpayer money involved, TARP money involved, and how they are spent without accountability, is close to being criminal."