The Campaign Spot

The Stimulus Bill Explicitly Guarantees Contractual Bonuses Executed Before February 11

Senator Chris Dodd’s challenger, Rob Simmons, was just given a golden, golden issue to run on.

Who in their right mind would codify in law that bonus payments to executives at bailed-out companies could not be prohibited?

Well, Chris Dodd.

From page H1412 of the Final Stimulus Bill, “SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE:

’(iii) The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary.”   
This amendment provides an exception for contractually obligated bonuses agreed on before Feb. 11, 2009, which exempts the very AIG bonuses Obama is condemning every single chance he gets. The amendment is in the final version and is law.

That’s the amendment that Dodd got placed in the Obama stimulus bill. You know, the one that passed with no House Republican votes, and only three Senate Republican votes.

Way to go, guys.

UPDATE: A reader notes that right now, Jim Tedisco should run an ad saying that his opponent, Democrat Scott Murphy, would have voted to protect these bonuses… by voting for the stimulus.

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