Read the SEC proposal that shareholders of TARP recipients get to vote separately on executive compensation and give us your opinion on the “Say for Pay” amendment.
Our own comment is that the rule makes no mention of the compensation committees and company directors who are responsible for creating the pay policies in the first place, and who, in so many instances, allowed the aggressive risk-taking that shareholders and taxpayers are now paying for.
The SEC proposal to amend Rule 14a-20 under the Securities Exchange Act would require that TARP recipients provide a separate shareholder vote during periods when the company has any outstanding obligation due to financial assistance provided under TARP.
Meanwhile, the House passed on the executive compensation bill right before the recess and the Senate will pick it up when the lawmakers adjourn.
August 13th, 2009 at 7:45 pm
Yes, but there is a bigger issue — shareholders OWN every company – not just TARP recipients – and the owners should be able to approve compensation for THEIR employees.
The government for the past 8 years has restricted shareholders from nominating directors, shareholder resolutions, and approving pay. Why? They own the company!
August 15th, 2009 at 8:58 pm
Somebody must hold company management responsible!!