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Federal Legislative and Regulatory Issues
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Say-on-Pay
H.R. 3269, introduced by House Financial Services Committee Chairman
Barney Frank (D-MA), has passed the House of Representatives. The bill
requires all public companies to have annual, non-binding shareholder
votes on executive compensation and non-binding votes on "golden
parachute" packages. The bill bans pay structures at financial
institutions that encourage "inappropriate risks" that would have
adverse effects on the economy or threaten the safety and soundness of
the covered financial institution. The GBA, other state banking associations and the ABA helped head off an amendment to H.R. 3269 that would have exempted only credit unions from “say on pay” provisions. Instead, we supported an alternative amendment offered by Congressman Jeb Henserling (R-TX) that would exempt all financial institutions under $1 billion in assets from section 4 of the bill. This amendment was adopted with the support of Committee Chairman Barney Frank (D-MA).
Similar legislation has
not yet been introduced in the Senate. |
GBA's professional staff represents the membership at the both the state and federal levels. Contact any of them with questions about issues:
Joe Brannen |
