Standards & Guidance
House supports shareholder vote on pay
The US House of
Representatives has passed, in the teeth of White House opposition, a
measure to give shareholders a non-binding vote on executive pay.
However, the bill has yet to go before the
Senate.
The legislation, which was passed by 269 votes to 134, also
contains a separate advisory vote to take place if a company grants a new, not yet disclosed
“golden parachute” while simultaneously negotiating to buy or sell a company.
During the debate, the
White House issued a statement in which it said it “does not believe that
Congress should mandate the process by which executive compensation is
approved”.
The government argued that before additional corporate
governance legislation is introduced, recent measures – such as revised
disclosure rules on executive compensation – should be given time to take
effect.
Links
US House of Representatives
Senate
White House
May 2007
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