Bank of America Corp. and a handful of other companies have until midnight to tell the government what they expect to pay top officers this year.
The requirement is part of the Treasury's ongoing effort to rein in big paychecks at banks that hold taxpayer-funded loans. In June, the Treasury said any firm that has gotten "exceptional assistance" from the government would have to submit compensation plans for its roughly top 100 officers to the new "pay czar."
Kenneth Feinberg, whose official title is "Special Master for TARP Executive Compensation," has 60 days to review the companies' plans. According to the Treasury, his job is to make sure that the pay plans do not encourage excessive risk and are consistent with compensation "for those in similar roles at similar entities."
Feinberg can reject the pay plans if he believes they are "inconsistent with the purposes of (regulations) or the public interest." He will automatically approve compensation packages not above $500,000, excluding some restricted stock, the Treasury said.
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