House Targets Excessive Compensation

“It is an outrage that we have companies who are losing money hand over fist, yet are providing bonuses to executives that would boggle the minds of most Americans,” said Serrano.  “When these companies are taking taxpayer dollars to help get themselves back on track we need to ensure that they are being responsible with the money they receive.  This legislation will help ensure that TARP funds are used to make companies profitable again, rather than to enrich corporate executives.”

The legislation was passed in the wake of reports that showed that AIG, which has received significant amounts of federal investment, had paid out more than $150 million in bonuses in recent months.  

H.R. 1664 now moves on to the Senate, which has yet to address the issue of executive compensation for TARP recipients.