HR 3269 Corporate and Financial Institution Compensation Fairness Act of 2009 is out of committe in the house and ready for a floor vote as early as Friday. Write your Congressman and express your views. I’ll be writing to ask for an affirmative vote (though that’s not likely as Heller is a dyed in the wool Republican, who never strays from the party line.)
This bill would modify the SEC Act of 1934 to allow shareholders to vote on executive compensation packages. Though non-binding, in that the board can ignore shareholders, it will most likely impact shareholder votes for board of director members at the next shareholder meeting. It also requires bank regulating agencies to prescribe joint regulations that prohibit any compensation structure or incentive-based payment arrangement that encourages inappropriate risks by financial institutions or their officers or employees that could: (1) threaten the safety and soundness of covered financial institutions; or (2) present serious adverse effects on economic conditions or financial stability.