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March 26, 2013

Revolving Door Bonuses Could See Legal Challenge From Public Interest Group

On the heels of disclosures that major financial institutions maintain policies to pay special bonuses to executives who leave for high-level government positions, a prominent consumer advocacy group has threatened to file lawsuits to challenge such practices.

Public Citizen, the organization founded by consumer advocate Ralph Nader, told The Huffington Post that it was so incensed by news of these bonus policies — as detailed in a report from watchdog group Project on Government Oversight — that it is now readying a legal challenge.

“Contracts promising bonuses only if [financial executives] take a government position are the revolving door at its worst,” said Craig Holman, a lobbyist for Public Citizen. “If a company is paying you a multimillion-dollar bonus for your government service, they’re going to expect something in return. There’s no way around that. This is literally a corporation buying the allegiance of a public official.”

Holman said Public Citizen is exploring whether it has standing to bring a legal action under Title 18, Section 209 of the United States Code, which prohibits “any contribution” by private parties to members of the “executive branch of the United States Government” that is directly linked to their public duties.”

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Read full Huffington Post article here

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