The provisions to end golden parachutes are also plagued with gaping loopholes. The bill does nothing to alter terms of existing contracts, for example, instead allowing retirement packages negotiated before the bailout to proceed. For future employees, meanwhile, the bill would prohibit golden parachutes only when the executive is fired, or the company fails, despite the federal help.
Again, only companies dumping more than $300 million in bad assets are even subject to the golden parachute rules — and it can effect only five employees per company. That means an executive in a corporation receiving more than $300 million from the taxpayer-funded bailout would remain eligible for an unlimited retirement bonanza if that company became profitable and the executive retired voluntarily.
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