‘Say on Exec Pay’ Bill Advances in House
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A key congressional committee took another step toward reforming the way Wall Street works yesterday. By a vote of 40-28, the House Financial Services Committee approved H.R. 3269, the Corporate and Financial Institution Compensation Fairness Act. The act would help end the excessive compensation practices that encourage executives to take excessive risks that ultimately hurt employees, shareholders and taxpayers.
The bill would give shareholders a “say on pay” and allow them a nonbinding vote on executive pay. It also would require that independent directors from outside of management serve on compensation committees.
Says committee Chairman Rep. Barney Frank (D-Mass.):
This bill is the first step toward comprehensive financial regulatory reform. I look forward to having this bill on the House floor soon, and I also look forward to changing the status quo.
