Executive Compensation: New Federal Initiatives Project

The Corporate and Financial Institution Compensation Fairness Act of 2009 ("The Act"), H.R. 3629, passed the House of Representatives on July 31, 2009.  That Act included substantial components from the Treasury Department's compensation proposals released on July 16, 2009.  The Act includes four provisions.  It mandates publicly traded companies give their shareholders an opportunity to conduct a non-binding, advisory vote on annual executive compensation (known colloquially as "Say-on-pay").  It also mandates that the Compensation Committees of the Boards of Directors of publicly traded companies consist of independent directors.  CONTINUE READING