House Panel Slated To Vote
On 'Say On Pay' Measure
DOW JONES NEWSWIRES
March 20, 2007 3:28 p.m.
By Siobhan Hughes
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The House Financial Services
Committee is scheduled to vote Wednesday on a bill that would give
shareholders some say over executive pay at U.S. public companies.
House Financial Services Committee Chairman Barney
Frank, D-Mass., introduced the bill earlier this month. Under the
measure, companies would be required to include in their annual proxy
filings a non-binding, advisory vote on pay to top executives.
Shareholders would also be entitled to an advisory vote on pay granted
in connection with transactions such as mergers.
"What's odd is that this is controversial," Frank told
the Council of Institutional Investors in a speech Monday. "We have
proposed that the shareholders get to say 'we approve or disapprove.'"
He said that "if the board of directors want to ignore the shareholders,
they can do that."
Investors say that an advisory vote would pressure
corporate boards to take shareholder interests into account. Businesses
say that such a vote would be a distraction for board directors, and
take away time that should be devoted to running businesses.
-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654;