NYT: article summary

Fed Cheif Calls for Scrutiny of Executive Pay Policies
Mar. 21, 2009

Ben Bernanke stated that regulators need to better monitor the financial stability and compensation policies of companies too big to fail, such as AIG and Citigroup. After AIG received $170 billion in government aid the company paid out $165 million in bonuses to executives. In rebuttal, Bernanke sought out legislation and passed a bill that would tax bonuses paid out this year by companies that received government aid at a rate of 90%. Bernanke believes management compensation policies should be aligned with the long-term prudential interests of the company.