The FDIC’s Expanding View of Golden Parachute Payments

Summer 2016

by Daniel. J. Beck |

“In the immediate aftermath of the financial collapse in 2008, the phrase ‘golden parachute’ was repeatedly printed in headlines when referring to large bonuses executives were receiving after leaving their companies and the world economy in ruins.  As the Treasury tried to stem the tide of bank failures through recapitalization efforts such as TARP, it prohibited certain incentive compensation practices for institutions who received funds through such programs.  Under the TARP regulations, any company receiving TARP funds could not give ‘golden parachute payments’ to senior executive officers for any reason, except for payments for services performed, until such funds were repaid to the Treasury.”

For more information, please contact Daniel J. Beck at 501-379-1762 or

Note:  The above is an excerpt from the article published in the Summer 2016 issue of The Arkansas Community Banker.  Click the link below to read the actual article.