Legislation gives shareholders the right to vote on top corporate pay packages
WASHINGTON – U.S. Rep. Gabrielle Giffords today voted for the Corporate and Financial Institution Compensation Fairness Act, legislation that will impose restrictions on the salaries of top corporate executives.
“Arizonans are working hard to make ends meet in the most difficult economy since the Great Depression,” said Giffords. “The cost of food, fuel, health insurance and education is going up. The last thing they want to see – the last thing I want to see – are Wall Street fat cats benefitting from extravagant salaries. Times are tough. Corporate executives need to recognize that.”
The Corporate and Financial Institution Compensation Fairness Act passed the House of Representatives today in a 237 to 185 vote. It now goes before the Senate for consideration.
The bill requires publicly traded companies to allow their shareholders to conduct nonbinding votes on the compensation packages and “golden parachutes” for the top executives. It also requires the Securities and Exchange Commission to develop regulations to restrict or prohibit employee compensation structures that encourage risk-taking that threaten the institution and the broader economy.
If the legislation becomes law, it will apply to banks, brokerages and financial institutions, including Fannie Mae and Freddie Mac.
In March, Giffords voted in support of bipartisan legislation aimed at recovering taxpayer dollars from companies that received federal assistance and rewarded executives with excessive bonuses. H.R. 1686 passed in a 328 to 93 vote.