Leading The News
Frank eyes Friday for executive
By Silla Brush
Posted: 07/26/09 11:08 PM [ET]
House lawmakers next week plan to cast their first votes on President
Obama's overhaul of the financial regulatory system by taking up new
restrictions on executive pay practices.
House Financial Services Committee Chairman Rep. Barney Frank (D-Mass.) said
that his committee would mark up legislation on Tuesday and proceed to votes
on the floor on Friday.
The legislation would require non-binding "say on pay" resolutions that are
intended to give shareholders a greater say on executive pay practices at
firms across the country. The legislation also aims to bolster the
independence of compensation committees and requires financial firms
"proscribe inappropriate and imprudently risky compensation practices as
part of solvency regulation," according to Frank's office.
In a letter on Friday, Republicans on the committee sought to delay the
markup and votes on the bill, arguing that there has not been a hearing on
the issue since the bill was introduced. Republicans said the provisions on
financial firms in particular "are both broad and vague and would vest
enormous discretion in the regulators."
The letter, signed by every committee Republican except Rep. Ron Paul
(Texas), notes that 20 percent of the committee's members are new and should
be given more time to review the legislation.
"It does these members a disservice to ask them to consider this legislation
without the benefit of a hearing and an opportunity to understand that they
are voting on," the letter reads.
Steve Adamske, Frank's spokesman, said the hearing would go on as scheduled.
"We have accommodated one delay already," he said. "They don't want to vote
on executive compensation."
The Financial Services Roundtable, an industry trade association, is opposed
to the bill and many financial groups have raised concerns.
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