H.R. 857

Limit Executive Compensation Abuse Act

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I

111th CONGRESS

1st Session

H. R. 857

IN THE HOUSE OF REPRESENTATIVES

February 4, 2009

Mr. Moore of Kansas (for himself, Mr. Cleaver, Mrs. McCarthy of New York, Ms. Giffords, Mr. Scott of Georgia, Mr. Childers, Mr. Grayson, Mr. Patrick J. Murphy of Pennsylvania, Mr. Ryan of Ohio, Mr. DeFazio, Mr. Ellison, Mr. Israel, Mr. McDermott, Mr. Schiff, Mr. Doggett, Ms. Berkley, Mr. Boccieri, Mr. Kissell, Mr. Massa, Mr. Perriello, Mr. Gene Green of Texas, Mr. McGovern, Mr. Edwards of Texas, Mr. Holt, Mr. Conyers, Mr. Braley of Iowa, Mr. Chandler, Mr. Schauer, Mr. Carnahan, Mr. Lipinski, Mr. Hinojosa, Mr. Space, Mr. Reyes, Mr. Tierney, Mr. Clay, Ms. Pingree of Maine, Mr. Driehaus, and Mr. Melancon) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To limit compensation to officers and directors of entities receiving emergency economic assistance from the Government, and for other purposes.

1.

Short title

This Act may be cited as the Limit Executive Compensation Abuse Act.

2.

Limit on executive compensation

(a)

In general

Notwithstanding any other provision of law or agreement to the contrary, no person who is an officer, director, executive, or other employee of a financial institution or other entity that receives or has received funds under the Troubled Asset Relief Program (or TARP), established under section 101 of the Emergency Economic Stabilization Act of 2008, may receive annual compensation in excess of the amount of compensation paid to the President of the United States.

(b)

Duration

The limitation in subsection (a) shall be a condition of the receipt of assistance under the TARP, and of any modification to such assistance that was received on or before the date of the enactment of this Act, and shall remain in effect with respect to each financial institution or other entity that receives such assistance or modification for the duration of the assistance or obligation provided under the TARP.

3.

Rulemaking authority

The Secretary shall expeditiously prescribe such regulations as are necessary to carry out this Act, including with respect to reimbursement of compensation amounts, as appropriate.

4.

Compensation

As used in this Act, the term compensation includes wages, salary, deferred compensation, retirement contributions, options, bonuses, property, and any other form of compensation or bonus that the Secretary of the Treasury determines is appropriate.