Footnoted.org has a link to this letter agreement provided to a TARP participant’s executives by the participant/company’s chief human resources officer under which the executive is to forego golden parachutes and other executive comp pursuant to the requirements of the TARP program. The Letter Agreement contains this language:
In addition, the Company is required to review its Benefit Plans to ensure that they do not encourage senior executive officers to take unnecessary and excessive risks that threaten the value of the Company. To the extent any such review requires revisions to any Benefit Plan with respect to you, you and the Company agree to negotiate such changes promptly and in good faith.
All of this is agreed to “in consideration of the benefits” that the executive will receive as a result of the Company’s participation in the government’s Capital Purchase Program.
More on TARP in previous posts here.