September 25, 2008

John O’Neill comments on proposed bailout legislation in article

1 min

John O'Neill, a partner in the Legislative and Government Affairs Group, was quoted extensively in a story on the impact the proposed bailout of the financial services industry could have on executive compensation practices in the industry and across the nation.

Democrats in Congress are insisting that taxpayers' interests must be most important and that Americans are "tired of enabling corporate excess." Many insisted that the bailout plan must include limits on executive compensation, and Republicans are agreeing. According to O'Neill, executive compensation regulations could play a big role in determining the success and effectiveness of the bailout plan.

Members of Congress feel forced to respond to the political heat they are receiving from constituents on the compensation issue, said O'Neill. "From the standpoint of whether this package will advance, executive compensation is a critical component," he told "It's very unlikely that this bill is going to get all the way through the process without some provisions on that."

That's the case even though such provisions probably will have little impact on whether the legislation achieves its intended purpose, with one exception: if the compensation restrictions are so stringent that some financial services firms decide not to participate in the program, he said.

The story is available online.