Jeff Bingaman United States Senator from New Mexico

U.S. SENATOR Jeff Bingaman

Thursday, March 19, 2009

Contact Senator Bingaman's Office:

Jude McCartin
Maria Najera
703 Hart Building
United States Senate
Washington, DC 20510
(202) 224-5521

Bingaman Cosponsors Bill to Limit Executive Bonuses

WASHINGTON - U.S. Senator Jeff Bingaman today offered his support for legislation that discourages excessive bonus compensation by companies that have received significant taxpayer funds from the Troubled Assets Relief program (TARP).  The bill also recoups such payments made to executives from companies that received TARP funding. 

Bingaman is a cosponsor of legislation introduced by Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Republican Chuck Grassley (R-IA) that would impose a 35 percent excise tax on both employers and employees on retention bonuses, and on performance bonuses to the extent they exceed $50,000 per employee.  Additionally, the proposal would cap the amount of income employees of these companies are allowed to defer (i.e., delay paying taxes).  Small banks and entities that received less than $100 million in TARP funds would be exempt from the legislation.   

“We must ensure that taxpayer money is not spent to provide excessive compensation to bank executives.  Although no approach is perfect, the bill I am cosponsoring will help to ensure that funding from the Troubled Assets Relief Program is not being squandered by recipient banks,” Bingaman said.

Bingaman is a senior member of the Senate Finance Committee, which has jurisdiction over tax issues.