Dodd-Frank News Center

Acting Special Master issues Ally Financial "Top 25" determination letter

This story appeared in Bank Digest.

The Acting Special Master for TARP Executive Compensation, Patricia Geoghegan, has released 2014 compensation determinations for the "top 25" executives at Ally Financial (formerly GMAC), the last remaining company that received exceptional Troubled Asset Relief Program (TARP) assistance. Six recipients of exceptional assistance--AIG, Bank of America, Chrysler, Chrysler Financial, Citigroup, and GM--have now exited TARP, and, to date, Ally has repaid approximately $15.3 billion, or 89 percent, of the $17.2 billion investment provided to it. Taken together, the original seven companies under the Office of the Special Master's jurisdiction have returned the $352 billion in total assistance provided, plus an additional positive return to date of more than $23 billion.

Treasury Criticized for “Excessive” Compensation at Bailed-Out Companies

By Sarah Borchersen-Keto, Washington News Bureau, Contributing Author, the Federal Banking Law Reporter and Bank Digest.

According to the Special Inspector General for the Troubled Asset Relief Program, the Treasury Department continues to allow “excessive” compensation for executives at firms like American International Group, Inc., and General Motors Corp. that often exceeds guidelines set by the Office of the Special Master for TARP Executive Compensation.

TARP Executive Compensation Rulings Issued

This story appeared in Bank Digest.

The Acting Special Master for TARP Executive Compensation, Patricia Geoghegan, released 2012 compensation determinations for the “Top 25” executives at the three remaining companies that received exceptional Troubled Asset Relief Program (TARP) assistance—AIG, Ally Financial (formerly GMAC), and GM. Four of the original seven recipients of exceptional assistance—Bank of America, Citigroup, Chrysler Financial, and Chrysler—have exited TARP. The Special Master determined that: overall compensation for the companies’ chief executive officers will be frozen at 2011 levels; and 2012 pay packages are to follow the framework established in 2009–2011, which is that most pay, including target incentives, is to be in the form of stock.

TARP Executive Compensation Rulings Report Issued

By Gregg D. Killoren, J.D., CCH State Banking Law Reporter, Bank Digest and Individual Retirement Plans Guide; co-author, Dodd-Frank Wall Street Reform and Consumer Protection Act—Law, Explanation and Analysis.

The Office of the Special Inspector General for the Troubled Asset Relief Program has released its evaluation of the process designed by the Office of the Special Master for TARP Executive Compensation (OSM) to set pay packages and OSM's decisions on compensation for the top 25 employees at the companies that received exceptional assistance under TARP. Under this evaluation, SIGTARP assessed the criteria used by OSM to evaluate and make determinations on each company's executive compensation and whether OSM consistently applied criteria to all seven companies.

Executive Compensation Likely Little Changed Despite Government Role

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

Recent data suggest that the government’s intervention in executive compensation through the Troubled Asset Relief Program ultimately may have little effect on executive pay practices, according to the latest Congressional Oversight Panel report.

It notes that while Special Master for Executive Compensation Ken Feinberg has achieved “significant changes” at the institutions under his review, including an average drop in overall compensation of 55 percent, he has “fallen short in his broader goal of permanently changing Wall Street’s pay practices.”

TARP Executive Compensation Rulings Issued

This story appeared in Bank Digest.

The Special Master for Executive Compensation has issued the following supplemental determinations regarding compensation and structures regarding companies that received funds under the Troubled Asset Relief Program.

TARP Executive Compensation Ruling Issued

This story appeared in Bank Digest.

The Special Master for TARP Executive Compensation has issued a supplemental determination regarding the proposed compensation structure submitted by American International Group, Inc., with regard to a new Chief Risk Officer.

TARP Executive Compensation Ruling Issued Regarding GM CEO

This story appeared in Bank Digest.

The Special Master for TARP Executive Compensation has issued a supplemental determination that compensation proposed by General Motors Company for Daniel F. Akerson, who was appointed to the position of Chief Executive Officer effective Sept. 1, 2010, will not, by virtue of their structural design or the amounts potentially payable under them, result in payments inconsistent with the public interest standard.

Special Master Issues Final Report

This story appeared in Bank Digest

Kenneth R. Feinberg, Special Master for TARP Executive Compensation, has submitted a final report summarizing the work during his tenure as Special Master. In the preface to the report, Feinberg noted “It is my personal belief that this Office made an important contribution to the highly-charged subject of executive compensation. It remains to be seen whether our work will have a lasting impact. Only time will tell.” The report is comprised of five parts. Part I provides the legislative and regulatory background and framework surrounding the Office. Part II outlines the Office’s duties, authority and organization. Part III describes the compensation determinations regarding firms that received exceptional taxpayer assistance. Part IV describes the review of payments made to Top 25 executives at all TARP recipients before the American Recovery and Reinvestment Act of 2009 introduced tighter standards. Part V includes the Special Master’s observations and recommendations in light of his experience as Special Master. The report also has a collection of exhibits, including all the compensation determinations to date.

Treasury Issues Status Report on SIGTARP Quarterly Audit Recommendations

This story appeared in Bank Digest.

The Treasury Department has issued a status report on its response to specific recommendations included in the Special Inspector General for the Troubled Asset Relief Program's (SIGTARP's) quarterly and audit reports, which appear in the SIGTARP recommendation chart included in the April 2010 Quarterly Report to Congress (see WSB No. 1699). The Treasury noted that its policies and programs currently address many of the issues raised in SIGTARP's recommendations, and, in many cases, the Treasury has taken specific actions to implement the recommendations. Where the Treasury believed that a particular recommendation would not help carry out its statutory duties under the Emergency Economic Stabilization Act, it has developed alternative ways to address the underlying concerns SIGTARP has raised and has explained the measures it is employing to do so to in its summary responses to SIGTARP and to Congress.