Source: https://www.law.cornell.edu/cfr/text/31/30.11?qt-cfr_tabs=0
Timestamp: 2016-02-07 06:20:31
Document Index: 708767300

Matched Legal Cases: ['art 30', '§ 30', '§\n30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§\n30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30', '§ 30']

31 CFR 30.11 - Q-11: Are TARP recipients required to meet any other standards under the executive compensation and corporate governance standards in section 111 of EESA? | US Law | LII / Legal Information Institute
CFR › Title 31 › Subtitle A › Part 30 › Section 30.11 31 CFR 30.11 - Q-11: Are TARP recipients required to meet any other standards under the executive compensation and corporate governance standards in section 111 of EESA?
Q-11: Are TARP recipients required to
meet any other standards under the executive
compensation and corporate governance standards in
section 111 of EESA?
3]Approval of compensation payments
to, and compensation structures for, certain
financial assistance. For any period during
which a TARP recipient is designated as a TARP
recipient that has received exceptional financial
assistance, the TARP recipient must obtain the
approval by the Special Master of all compensation
payments to, and compensation structures for, SEOs
and most highly compensated employees subject to
paragraph (b) of § 30.10 (Q-10). TARP recipients
that receive exceptional financial assistance must
also receive approval by the
Special Master for all compensation structures for
other employees who are executive officers (as
defined under the Securities and Exchange Act,
Rule 3b-7) or one of the 100 most highly
compensated employees of a TARP recipient
receiving exceptional assistance (or both), who
are not subject to the bonus limitations under §
30.10 (Q-10). For this purpose, compensation
payments and compensation structures may include
awards or other rights to compensation which an
employee has already received but not yet been
paid or, in some instances, fully accrued.
Accordingly, the Special Master has the authority
to require that such compensation payments or
compensation structures be altered to meet the
standards set forth in § 30.16 (Q-16). However,
this approval requirement is not applicable to
payments that are not subject to paragraph (a) of
§ 30.10 (Q-10) due to the application of paragraph
(e)(2) of § 30.10 (Q-10) or the effective date
provisions of § 30.17 (Q-17), though the Special
Master will take such payments into account in
reviewing the compensation structure and amounts
payable, as applicable, that are subject to
review. Notwithstanding any of the foregoing,
approval is not required with respect to an
employee not subject to the bonus payment
limitations to the extent that the employee's
annual compensation, as modified in § 30.16 (Q-16)
to include certain deferred compensation and
pension accruals but to disregard any grant of
long-term restricted stock, is limited to $500,000
or less, and any further compensation is provided
in the form of long-term restricted stock. For
details, see§ 30.16 (Q-16).
Perquisite disclosure—
TARP recipients must
annually disclose during the TARP period any
perquisite whose total value for the TARP
recipient's fiscal year exceeds $25,000 for each
of the SEOs and most highly compensated employees
that are subject to paragraph (a) of § 30.10
(Q-10). TARP recipients must provide a narrative
description of the amount and nature of these
perquisites, the recipient of these perquisites,
and a justification for offering these perquisites
(including a justification for offering the
perquisite, and not only for offering the
perquisite with a value that exceeds $25,000).
Such disclosure must be provided within 120 days
of the completion of a fiscal year any part of
which is a TARP period.
must provide this disclosure to Treasury and to
its primary regulatory agency.
disclosure—(1) General rule. The
compensation committee of the TARP recipient must
provide annually a narrative description of
whether the TARP recipient, the board of directors
of the TARP recipient, or the compensation
committee has engaged a compensation consultant;
and all types of services, including
non-compensation related services, the
compensation consultant or any of its affiliates
has provided to the TARP recipient, the board, or
the compensation committee during the past three
years, including any “benchmarking” or comparisons
employed to identify certain percentile levels of
compensation (for example, entities used for
benchmarking and a justification for using these
entities and the lowest percentile level proposed
for compensation). Such disclosure must be
provided within 120 days of the completion of a
fiscal year any part of which is a TARP
not required to maintain compensation
committees. For those TARP recipients not
required to establish and maintain compensation
committees under § 30.4(c) (Q-4), the board of
directors must provide the disclosure under §
30.4(c)(1).
Prohibition on gross-ups.
Except as explicitly permitted under this part,
TARP recipients are prohibited from providing
(formally or informally) gross-ups to any of the
SEOs and next twenty most highly compensated
employees during the TARP period. For this
purpose, providing a gross-up includes providing a
right to a payment of such a gross-up at a future
date, for example a date after the TARP
Approval of compensation payments to, and compensation structures for, certain employees of TARP recipients receiving exceptional financial assistance. For any period during which a TARP recipient is designated as a TARP recipient that has received exceptional financial assistance, the TARP recipient must obtain the approval by the Special Master of all compensation payments to, and compensation structures for, SEOs and most highly compensated employees subject to paragraph (b) of § 30.10 (Q-10). TARP recipients that receive exceptional financial assistance must also receive approval by the Special Master for all compensation structures for other employees who are executive officers (as defined under the Securities and Exchange Act, Rule 3b-7) or one of the 100 most highly compensated employees of a TARP recipient receiving exceptional assistance (or both), who are not subject to the bonus limitations under § 30.10 (Q-10). For this purpose, compensation payments and compensation structures may include awards or other rights to compensation which an employee has already received but not yet been paid or, in some instances, fully accrued. Accordingly, the Special Master has the authority to require that such compensation payments or compensation structures be altered to meet the standards set forth in § 30.16 (Q-16). However, this approval requirement is not applicable to payments that are not subject to paragraph (a) of § 30.10 (Q-10) due to the application of paragraph (e)(2) of § 30.10 (Q-10) or the effective date provisions of § 30.17 (Q-17), though the Special Master will take such payments into account in reviewing the compensation structure and amounts payable, as applicable, that are subject to review. Notwithstanding any of the foregoing, approval is not required with respect to an employee not subject to the bonus payment limitations to the extent that the employee's annual compensation, as modified in § 30.16 (Q-16) to include certain deferred compensation and pension accruals but to disregard any grant of long-term restricted stock, is limited to $500,000 or less, and any further compensation is provided in the form of long-term restricted stock. For details, see § 30.16 (Q-16).
Perquisite disclosure - (1)
General rule. TARP recipients must annually disclose during the TARP period any perquisite whose total value for the TARP recipient's fiscal year exceeds $25,000 for each of the SEOs and most highly compensated employees that are subject to paragraph (a) of § 30.10 (Q-10). TARP recipients must provide a narrative description of the amount and nature of these perquisites, the recipient of these perquisites, and a justification for offering these perquisites (including a justification for offering the perquisite, and not only for offering the perquisite with a value that exceeds $25,000). Such disclosure must be provided within 120 days of the completion of a fiscal year any part of which is a TARP period.
Location. A TARP recipient must provide this disclosure to Treasury and to its primary regulatory agency.
Compensation consultant disclosure - (1)
General rule. The compensation committee of the TARP recipient must provide annually a narrative description of whether the TARP recipient, the board of directors of the TARP recipient, or the compensation committee has engaged a compensation consultant; and all types of services, including non-compensation related services, the compensation consultant or any of its affiliates has provided to the TARP recipient, the board, or the compensation committee during the past three years, including any “benchmarking” or comparisons employed to identify certain percentile levels of compensation (for example, entities used for benchmarking and a justification for using these entities and the lowest percentile level proposed for compensation). Such disclosure must be provided within 120 days of the completion of a fiscal year any part of which is a TARP period.
Application to TARP recipients not required to maintain compensation committees. For those TARP recipients not required to establish and maintain compensation committees under § 30.4(c) (Q-4), the board of directors must provide the disclosure under § 30.4(c)(1).
Prohibition on gross-ups. Except as explicitly permitted under this part, TARP recipients are prohibited from providing (formally or informally) gross-ups to any of the SEOs and next twenty most highly compensated employees during the TARP period. For this purpose, providing a gross-up includes providing a right to a payment of such a gross-up at a future date, for example a date after the TARP period.