What: All Issues : Government Checks on Corporate Power : General : Requiring publicly traded companies to allow shareholders to cast non-binding votes on compensation packages for top executives beginning in 2009 (H.R. 1257)/Rep. Tom Price (R-Ga.) substitute that would replace the legislation with statement by the House that the SEC's rulemaking on executive pay was adequate (2007 house Roll Call 240)
 Who: All Members : New York, District 2 : King, Pete
[POW!]
 
Requiring publicly traded companies to allow shareholders to cast non-binding votes on compensation packages for top executives beginning in 2009 (H.R. 1257)/Rep. Tom Price (R-Ga.) substitute that would replace the legislation with statement by the House that the SEC's rulemaking on executive pay was adequate
house Roll Call 240     Apr 20, 2007
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This vote was on replacement text for a bill requiring publicly traded companies to allow shareholders a say in the compensation packages of top executives. Proposed by Rep. Tom Price (R-Ga.), the measure was what's known as an amendment in the nature of a substitute, meaning if enacted, it would replace the entire text of the bill with a finding stating that the Security and Exchange Commission's (SEC) 2006 ruling requiring the disclosure of executive compensation to shareholders provides a "complete and adequate mechanism for shareholder approval" of executive pay.

The legislation Price was seeking to strike would require that all publicly traded corporations conduct annual nonbinding advisory votes on the compensation of their executives beginning in 2009. The impetus for the bill was a growing concern among lawmakers as well as many economists that the widening discrepancy between pay for executives and working- and middle-class Americans was harmful for both the economy and social mobility.

Price related what he and many Republicans consider excessive federal regulations as the reason why an increasing number of U.S. companies are moving oversees, and stated that Congress should not add to the regulatory burden.

In 2006, the SEC ruled that publicly traded companies to publish executive compensation packages, including stock options and bonuses.

"My amendment is a vote for transparency," Price said. "It is a vote for disclosure over increased government expansion and regulation. A vote against this amendment will increase the incentives for companies to go from public to private and to move from onshore to offshore."

Frank said the amendment was simply a ruse. It would simply "let people vote against the bill without voting against the bill," he said. "Again, the effect of this amendment is exactly, exactly the same as voting 'no' on the bill. Why would you vote for an amendment that says you don't need a bill instead of simply voting `no'?"

Democratic opposition to Price's amendment in the nature of a substitute was unanimous. Thirty-four Republicans also voted against it. Thus, by a vote of 148 to 257, the House rejected an attempt to kill legislation requiring publicly traded companies to allow shareholders a say in the compensation packages of top executives, and the measure moved forward intact.

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