Wednesday, October 01, 2008

About Those "Golden Parachutes"

Think that Congress is gonna get tough on all those Golden Parachutes? Think again (pp. 32-33):

19 (c) AUCTION PURCHASES.—Where the Secretary de
20 termines that the purposes of this Act are best met
21 through auction purchases of troubled assets, and only
22 where such purchases per financial institution in the ag
23 gregate exceed $300,000,000 (including direct purchases),
24 the Secretary shall prohibit, for such financial institution,
25 any new employment contract with a senior executive offi
1 cer that provides a golden parachute in the event of an
2 involuntary termination, bankruptcy filing, insolvency, or
3 receivership.

So, as long as the bailout for your company is only immense (say $250m) as opposed to colossal ($300m+) you can still enjoy your golden parachute.

Boy, thats really stickin' it to the man!

No comments: