Kenneth Feinberg may require some firms to “claw back” past bonuses paid out to executives, reports Reuters. “There are some real concerns about the scope of ‘clawbacks’ and the people and payments that they may reach,” said Linda Rappaport, who leads the executive compensation practice at Shearman & Sterling, a New York Law firm. Feinberg recently told a crowd on Martha’s Vineyard that Congress gave him broad discretion to recover compensation paid to bailout recipients. “It is a very difficult issue,” Feinberg said during his remarks at the island off the Massachusetts coast. “I’m not sure it is a good idea for the U.S. Treasury to be a bill collector or try to get money back as an institution.” Feinberg is focused on reviewing lists of the 25 highest paid employees of seven major firms who received taxpayer funds, including Citigroup, American International Group, and Bank of America.
Wall Street Keeps Eye on Feinberg
Wall Street awaits Kenneth Feinberg’s decision on whether to take back executive bonuses given out to TARP recipients.
August 20, 2009