House Considers Bill Over Shareholder Say In Pay

Law360, New York (March 8, 2007, 12:00 AM EST) -- A company’s board of directors—not its shareholders—is best suited to set salaries for executives, a representative of U.S. businesses told the U.S. House Committee on Financial Services Thursday.

The committee heard from speakers who oppose and support H.R. 1257, the Shareholder Vote on Executive Compensation Act, which was introduced earlier this month by Rep. Barney Frank, D-Mass., and others. The legislation would require public companies to include a non-binding advisory shareholder vote on their executive pay plans in their annual proxies.

Introduced amid clamoring over executive...
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