Will the bailout have any impact on executive pay?

06.10.2008

More recently, the bailout package for and contained language to ensure the "reasonableness and comparability of compensation" for leaders of those lenders, but the Institute for Policy studies notes that the law does not define reasonable compensation. Notably, Sarbanes-Oxley, which was enacted after the accounting scandals in 2002, contains no restrictions on executive compensation. It does, however, require CEOs and CFOs to give up bonus money, incentive compensation, equity compensation or profits they earned from selling company stock if they have to restate their company's earnings as a result of financial malfeasance.