Executive Pay and the Credit Crisis of 2008 (B)

Case Solution

V.G. Narayanan, Lisa Brem
Harvard Business School ()

When the recession lasted until 2009, the US government tried to limit executive salaries and excessive risk. The debate intensified about what constitutes undue risk and how best to contain it. This case describes the government’s restrictions on executive compensation for TARP recipients and addresses the debate on executive compensation and incentives that encourage undue risk.

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