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Summary
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 Covers
legislative developments related to
executive compensation
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Shareholder Vote on
Executive Compensation Act
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H.R. 1257
4.20.07 
U.S. House of Representatives passed H.R. 1257 by vote of
269 to 134 on 4.20.07
Senator Obama introduced companion bill (S. 1181) on same
date
- Requires shareholder advisory vote on
executive compensation (annual proxy materials) and
any "golden parachute"
compensation negotiated as part of merger, sale or acquisition (proxy materials
for transaction)
S. 1181
4.20.07
- Comparable to H.R. 1257 version, S. 1181 proposes
annual vote on executive pay -- as well as severance agreements negotiated as
part of a merger, sale or acquisition -- with effective date of 2009.
- Introduced by Barack Obama (D-IL)
- Referred to Senate Committee on Banking, Housing
and Urban Affairs
In
related news
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Aflac Incorporated announced on 2.14.07
board approval of shareholder advisory vote on executive pay, with
2009 effective date
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Over 60 companies have gotten proposals
in 2007 proxy season
- Shareholders approved "say on pay" proposals at
Blockbuster, Motorola, Ingersoll-Rand, and Verizon
- Proposals are pending at Cisco, Sara Lee, and Sun
Microsystems
- We track these proposals on our
"Say on Pay" Proposals topic
page
- Public companies and shareholder advocates have
formed "say on pay" working group
- North Dakota has adopted incorporation provisions that
include shareholder advisory vote on compensation committee report
- Applies to companies incorporated after 7.01.07 that elect to be covered by new law
- Press release
4.11.07
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The
Small Business and Work Opportunity Act of 2007
SEC_CODE_REF_0090001192884
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Senate bill
approved 1.31.07
- Annual deferral to nonqualified deferred
compensation arrangements would be limited to lesser of $1 million or average
taxable compensation for previous five years
- Provision applicable to tax years beginning after
12.31.06
- Estimated to raise $307 million over 10 years and
$806 million over 15 years
Related
documents
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Protection Against Executive
Compensation Abuse Act
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HR 4291
11.10.05
- Would require shareholder approval of executive
compensation packages
- Introduced by Barney Frank (D MA)
D Mass - House Financial Services Committee Chairman
- Congressional webpage
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Related Topics
Commentary
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