All TARP recipients remain subject to the general executive compensation restrictions under EESA and Treasury’s IFR. Annually, the CEO and CFO of each TARP recipient submit to Treasury certifications of compliance with the restrictions under the IFR. The Office of the Special Master exercises interpretive authority over the IFR as it applies to all TARP recipients.
On December 19, 2014, Treasury announced the sale of its remaining shares in Ally Financial — the last exceptional assistance recipient under TARP — for $1.3 billion. Six of the original seven recipients of exceptional assistance — AIG, Bank of America, Citigroup, Chrysler Financial, Chrysler and GM — had already exited TARP.
During 2009-2014, the Office of the Special Master annually reviewed compensation structures for the top 100 employees at the exceptional assistance recipients while the companies were under TARP, including issuing determinations that set compensation amounts for the top 25 employees, all of which are available to the public
. The Office of the Special Master has been effective at limiting compensation at the seven companies over which it had authority, while ensuring the companies were well-positioned to pay back the taxpayers’ investments.
Achievements of the Office of the Special Master:
- OSM cut average cash compensation for the top 25 executives at the seven companies that received exceptional TARP assistance by more than 90 percent.
- OSM reduced average total compensation for the top 25 executives at the seven companies by more than 50 percent.
- Overall, more than 80 percent of compensation for the top 25 executives at the covered firms was payable in the form of stock-based compensation. This helps ensure that compensation is tied to long-term performance.
- By the end of 2014, all seven companies that received exceptional assistance—AIG, Ally Financial, Bank of America, Citigroup, Chrysler Financial, Chrysler and GM—had exited TARP.
- Taken together, the original seven companies under OSM's jurisdiction have returned the $352 billion in total assistance provided, plus an additional positive return of more than $26.9 billion.
Acting Special Master Patricia Geoghegan testified before the House Oversight and Government Reform Subcommittee on Economic Growth, Job Creation and Regulatory Affairs on February 26, 2013. Read the written testimony.
For an update on TARP executive compensation, see the OSM September 10, 2014 Fact Sheet .