Today: Executive Compensation Reform on House Floor
Today, the House of Representatives will consider H.R. 3269, the Corporate and Financial Institution Compensation Fairness Act of 2009. The bill would rein in executive compensation practices that led to excessive, reckless risk-taking and contributed to the recent financial collapse. An updated version of the bill can be viewed here. A summary of the bill can be viewed here.
Specifically, H.R. 3269 would give shareholders a “say on pay” for top executives and ensure that they have a nonbinding, advisory vote on their company’s pay practices. The bill would also require federal regulators to proscribe any inappropriate or imprudently risky compensation practices as part of solvency regulation of all financial institutions. In addition, financial firms would be required to disclose any compensation structures that include incentive-based elements.
The House Financial Services Committee approved the measure earlier this week by a vote of 40-28.