4 new restrictions on executive pay

01/7/2009 | Business & Legal Reports

Even if your company doesn't take money under the $700 billion Troubled Assets Relief Program, the U.S. bailout program may have you revising your policy on executive pay. The most broadly applied of the pay restrictions is a section that curbs incentive plans that promote unnecessary, excessive risks. All companies "should reexamine incentive packages in light of potential risk taking that might be involved," says an analyst at Equilar, a compensation research firm, based on guidance from the Securities and Exchange Commission.

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