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On TARP and bankers’ shared sacrifice…

It’s no secret that banks that are receiving money from the Treasury under TARP have had to agree to limitations on pay for top executives. But it wasn’t entirely clear how the various banks would handle this. And then we spotted this 8K filed by Bank of New York Mellon (BK) late yesterday.

In this agreement attached to the exhibit, which the 8K says applies to executives Robert P. Kelly, Gerald L. Hassell, Thomas P. Gibbons, Steven G. Elliott and Ronald P. O—Hanley, the company’s board writes that it “appreciates the concessions you are making…during these financially turbulent times.” The short letter — dated last Friday — goes on to identify several different pay-related items that the executives agree to, including the end of so-called golden parachutes, a clawback provision, and amends previously existing employment contracts.

What stands out about the Bank of New York Mellon letter is that others on the receiving end of TARP don’t seem to have put out similar letters. For example, this 8K filed by Merrill Lynch (MER) yesterday just notes the restrictions, but doesn’t include an agreement. Nor does Wells Fargo (WFC) which also filed a TARP-related 8K yesterday.

Of course, given what the WSJ has to say here about banks and other financial companies receiving help from Treasury owing over $40 billion in deferred compensation and pensions, it’s pretty clear that the new rules barely scratch the surface.