Emergency Act Leaves Many Unanswered Questions

Law360, New York (October 16, 2008, 12:00 AM EDT) -- The Emergency Economic Stabilization Act of 2008 (the "Act"), signed into law by President Bush on Oct. 3, 2008, contains several provisions affecting executive compensation. Ambiguities in the Act, however, create questions as to the scope of the Act's provisions and permissible avenues of compliance.

The Act regulates executive compensation in two separate ways. Under one provision of the Act, institutions that benefit from government aid are directly prohibited from providing certain types of compensation to certain executives.

Under another provision, the government uses the Internal...
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