Schumer to include 'say on pay' in bill

Sen. Charles Schumer is planning to introduce legislation which would mandate that public corporations give shareholders an advisory vote on executive compensation.
APR 27, 2009
By  Sue Asci
Sen. Charles Schumer is planning to introduce legislation which would mandate that public corporations give shareholders an advisory vote on executive compensation. The so-called say-on-pay provision is one of several requirements outlined in the New York Democrat’s proposed Shareholder Bill of Rights Act of 2009, according to a letter seeking support that he sent to colleagues in the Senate Friday. In addition to the executive compensation advisory vote, the act would require shareholder approval for executive “golden parachutes.” It would also give shareholders access to the corporate proxy process to nominate members to the board. All directors would be subject to annual votes from shareholders and would be required to receive a majority of votes in order to stay on a board. The bill would also mandate that the duties of chief executive and chairman be separate and require corporations to create a separate committee to oversee risk management. It is too early to predict the proposal’s success, said Tim Smith, senior vice president at Walden Asset Management, a division of Boston Trust and Investment Management Co. and a leader of a national coalition of investors advocating for say on pay. “Certainly the time is right,” he said. “There is a lot of public sentiment in favor of support for these kinds of reforms.” Shareholders at many companies are voting on say-on-pay resolutions during this proxy season. “Say on pay is very popular right now,” Mr. Smith said. “At a number of companies, the majority of shareholders have voted for it.” Whether Mr. Schumer’s proposal is introduced and passed, “we are quite confident that the say-on-pay piece will pass sometime this year,” Mr. Smith said.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.