By: Paul Kiel
Source: propublica.org
Departing executives at some major banks that received TARP funds, got huge compensation packages. The execs received the sums, ranging from $270,000 to multimillion-dollar payouts, simply for leaving. The story was a partnership with public radio’s Marketplace, and you can listen to it here [2].
Our story came just after the Treasury issued new rules on executive pay for banks that received TARP funds. Those rules prohibit paying an exec just for leaving. At the time, we reported that it was unclear if executive payments made prior to the new guidelines would be affected. Now, after hearing from the Treasury Department, we can report that they will not. The previously promised golden parachutes will be grandfathered in, meaning the banks can pay them out in full.
