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Trickle-down TARP

2 Responses | April 10th, 2009

So, I had an awkward conversation late last week.  I have worked with two institutions that have taken TARP money (no need to run the, “Niiiiiiice, BP!  Way to bring down the economy”, takes).  One of those old legacy clients called me about doing an annual audit of their online search initiatives.  Towards the end of the call when I’m going over the fee estimate, I get the, “Let me run that by [her boss].  Due to compensation caps of executives here right now, we have also had to put in place controls against contractor expenses that would exceed those thresholds, too.”

Beautiful. If this turns out to be the case, we will have to part ways and then they can get some low-rent “Submit To The Top 1000 Search Engines” hack to help them pay taxpayers back. 

Anyone else run into this yet?

Update 4/14/09:  As pointed out in the comments, obviously I don’t bill $500k for an audit.  But there is, at least within this client’s business, a movement of executives considering switching to “contractor/consultant” status to get around the intent of the legislation.  Any consulting deals that bill above a certain rate are getting flagged.

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  1. Commented by Garrett at 10th April 2009, 8:34 am

    Can’t you just cut your rate to $499,999.99 to avoid the threshold. :)

  2. Commented by Brian at 14th April 2009, 11:17 am

    @ Garrett, ha! I wish. My audits are awesome, but not NBA Minimum Salary awesome. I will edit the above to be more clear and update.

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