Executive pay rules will spread beyond US banks

Author: | Published: 1 Mar 2009
Clawback disclosure is a thorny issue to define without SEC rules

Rules being debated in the US create a framework for more restrictions on executive pay across industries.

The executive compensation disclosure requirements of the Troubled Assets Relief Programme (Tarp) and say-on-pay legislation that Congress is debating establish a template for further rules addressing compensation at public and private financial institutions.

Amendments to tax laws, such as IRS Section 409A and 162(m), are likely to further limit deferred compensation and cap severance pay. Clawback...