Posted on 04/20/2007 8:10:50 PM PDT by jdm
WASHINGTON, April 20 -- The U.S. House of Representatives Friday approved a bill that would give stockholders a right to cast non-binding votes on the pay of top company executives.The "say on pay" bill, which passed 269-134, would also let shareholders vote on any executive "golden parachute" compensation negotiated as part of a purchase or sale of a company. After the vote, presidential hopeful Sen. Barack Obama, D-Ill., promised to introduce what an aide described as an "identical" bill in the Senate. The bill would give "shareholders the power to debate and fight back against exorbitant executive compensation," Obama said. Most Republicans, the White House and major business groups oppose the legislation, calling it government interference in business affairs.
The House bill, drafted by House Financial Services Committee Chairman Barney Frank, D-Mass., would require the Securities and Exchange Commission to write rules under which investors could use company-issued ballot forms to vote on executive pay on an advisory basis, starting in 2009, The Wall Street Journal reported.
The bill builds on SEC rules written last year that require increased transparency in disclosing executive compensation, including a total compensation number.
This from the guy who pimped the companies he was invested in. LOL.
There is an issue here: The issue is that although shareholders are supposed to own the company, their representatives (the directors) are usually nominated by the CEO. Once entrenched, the playing field is uneven as existing officers and board members are able to use company funds and shareholder info in fighting shareholder battles, but dissident shareholders must fund their own battles.
There is perhaps a role here for the government to, in essence, mandate fair “elections”.
Of course, this isn’t it. I mean, this is stupid. If you are going to get involved in corporate governence, why muck up the works and then make it advisory?
The freakin’ socialists just cannot keep thier hands off of capitalism, can they?? The voters, in the last election, really put the shaft to America by putting these pinkos in charge...
The ‘vote’ would be no more or less binding than before this feel good bill originated it seems. Do you have a link to the potential legislation?
Actually, I’m amazed how many shareholders vote for management proposals (ie new option plans, etc.)
Does this mean we get to vote on pay increases and retirement $$’s for Congress. I could live with that.
Makes sense. If you have good management, you want them to stay on and not be lured elsewhere by better compensation.
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