Rep. Barney Frank's Financial Services Committee will take up a new bill next week to ban bonuses at any companies benefiting from federal bailout funds. The legislation would amend last year's bailout bill to prohibit TARP-fund recipients from paying any type of bonus to any employee no matter what--even if the bonus is called a retention payment. The bill would also prohibit compensation that is "excessive" or not based on performance standards.
The legislation comes after a chaotic House vote on Thursday to levy a 90% tax on bonuses, and also after Sens. Ron Wyden and Olympia Snowe announced plans to introduce legislation providing a 35% tax on bonuses of more than $25,000.
Financial Services Committee spokesman Steve Adamske tells the Huffington Post that the new bill is complementary to the prior anti-bonus measures. It would add an additional layer in the burgeoning bonus prevention effort.
"We outlaw lewd and lascivious behavior," Adamske says.
The bill will be marked up in committee next Tuesday.