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This statement was released by the
House Financial Services
Committee Democrats. Congressman Frank is the Ranking Democratic
Member on the Committee. HOUSE
FINANCIAL SERVICES COMMITTEE TO PROBE EXECUTIVE COMPENSATION
May 22, 2006
FOR IMMEDIATE RELEASE
CONTACT: Steve Adamske 202.225.7141
Washington, DC – The House Financial Services
Committee today announced that the committee would hold a hearing on the
issue of executive compensation on Thursday, May 25, at 1:00 p.m. The
hearing officially is a continuation of a hearing on the Securities and
Exchange Commission (SEC) agenda, but will focus solely on the issue of
executive compensation. The hearing was prompted after minority members of
the committee were prevented from calling witnesses for a recent hearing
with SEC Chairman Christopher Cox. Witnesses for the hearing will be
announced soon.
WHO: House Financial Services Committee
WHAT: Hearing on Executive Compensation (officially known as "Protecting
Investors and Fostering Efficient Markets: A
Review of the S.E.C. Agenda."
WHEN: Thursday, May 25 1:00 p.m.
WHERE: Room 2128, Rayburn House Office Building
Last year, Congressman Barney Frank introduced H.R. 4291 "The Protection
Against Executive Compensation Abuse Act" to address the problem of runaway
executive compensation by requiring greater disclosure of executive
compensation to shareholders. Frank's initiative would not set any
artificial limits on individual executive compensation. Rather, the
legislation would give shareholders more information about management pay
packages and require shareholder approval of executive compensation plans.
The bill currently has 21 co-sponsors, and the bill is awaiting further
action in the House Financial Services Committee.
In early May, all 33 minority members of the House Financial Services
Committee signed a letter today to invoke Rule XI to force a Financial
Services Committee hearing on the issue of executive compensation. Financial
Services Committee Chairman Mike Oxley denied a request by Ranking
Democratic Member Barney Frank requesting a second panel to be dedicated to
the issue of executive compensation. The issue of executive pay is relevant
because the SEC is currently in the middle of a rulemaking process to revise
regulations regarding the disclosure of executive pay and so-called golden
parachute pay packages.
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