"Emergency Economic Stabilization Act of 2008 (EESA)"

The Emergency Economic Stabilization Act of 2008 (“EESA”), which President Bush signed into law on October 3, 2008, created the Troubled Asset Relief Program (“TARP”) under which the United States Treasury (the “Treasury”) is generally authorized to purchase troubled assets from certain financial institutions.  EESA establishes different sets of restrictions for financial institutions based on whether they sell troubled assets directly to the Treasury or whether they sell troubled assets through an auction process.  EESA also modified certain tax code provisions that placed limitations on the deductibility of compensation paid to certain executives.  This blog provides a brief overview of EESA provisions that address the executive compensation practices of financial institutions participating in TARP.Continue Reading Impact of the Emergency Economic Stabilization Act of 2008 on Executive Compensation Issues