CEO Pay Takes A Hit In Bailout Plan

September 29, 2008

Original publication: USA Today

Date of publication: September 29, 2008

The draft of the government's controversial $700 billion financial rescue plan released Sunday makes it clear that CEOs of firms seeking the bailout are about to have their pay packages capped.

The proposal seeks to rein in compensation at participating companies by limiting their tax deduction on executive salaries exceeding $500,000. It allows officials to recover bonuses that have been paid out based on financial statements that later prove to be inaccurate. And it bans exit-pay packages, or golden parachutes, at those companies.

Read the full article in USA Today.