This morning we covered the Shareholder Vote on Executive Compensation Act, introduced by Financial Services Chairman Barney Frank, which would allow shareholders a non-binding vote on executive compensation plans and new “golden parachute” arrangements. The final vote on the bill is scheduled for Friday.
Rep. David Scott (GA-13) discusses the merits of the bill:
“Some of the most outrageous demonstrations of this have been corporate CEO packages that have rewarded executives with hundreds of millions of dollars in their packages for a lack of performance, even while their company has been going down, even while their company has been laying off people, even as they have turned their backs on their pension obligations to their employees. No, sir, this is not an abberation. There is a hue and a cry from the American people…”
During the debate on the rule earlier this afternoon, Financial Services Chairman Barney Frank addressed various objections to the bill:
“I often disagree with my colleagues on the other side, but I have rarely been as baffled by the illogic of their arguments as I am today. I do not recall the last time I heard such a hodgepodge of inconsistency and innaccuracy. This is a bill that has been condemned for being A) bullying and intrusive and B) toothless. The toothless bully is, I guess, a new concept.”