Levine: Regulators Likely to Curtail Payments Based on Short-Term Results

August 9, 2009. Recent congressional efforts to increase restrictions on executive compensation will likely have a drastic effect on payment structures throughout the financial services industry, according to an article in the August 9, 2009 issue of Crain's Investment News. A recent bill passed by the House proposes to give shareholders of public companies annual non-binding votes on executive pay and would prohibit compensation that encourages employees to take risks that threaten the safety and soundness of the financial institution. The article cites Alan Levine, a partner in Morrison Cohen's Executive Compensation and Employee Benefits practice for his view that regulators will likely reduce payments based on an institution's short-term results. The full article can be found at http://tinyurl.com/nco25r.