Obama Seeks Powers for SEC on Executive Pay, No Outright Caps

Source: Bloomberg

June 10 (Bloomberg) -- The Obama administration announced it will seek new powers for the Securities and Exchange Commission to force firms to let shareholders vote on executive pay and make directors who set compensation more independent, without setting any outright caps.

Today’s proposal, subject to congressional approval, would cover all U.S. public companies. President Barack Obama has long supported giving shareholders nonbinding votes on bonuses, salaries and severance packages. The administration also will name a “special master” to monitor compensation plans for firms receiving exceptional assistance in the financial rescue.

The changes are aimed at reducing systemic risks and quelling a political uproar over bonuses paid to executives whose companies received federal rescue funds. Treasury Secretary Timothy Geithner has repeatedly blamed pay standards tied to short-term profits for contributing to the worst financial crisis since the 1930s.

“Companies should seek to pay top executives in ways that are tightly aligned with the long-term value and soundness of the firm,” the Treasury chief said in a statement today.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aroYO3mYtcwE

:eyes:

Great. I've always wanted a nonbinding vote.

(sarcasm)

has some things in common with the 'new' credit card bill.

Politeness only works so far, especially if one wants change.

Nothing wrong with trying to ask to do the civil and polite ways first, but if these folks remain - dare I say it - anti-American*...


* See, knowledge and intellect should be rewarded as well. That's part of capitalism; paying knowledgeable people well so they can buy what they need to live, study and improve their lives with. What's been going on is just thievery and good, real people are hurting because of these folks' actions.

Less talk, more teeth, please.