Perlmutter Supports Limits on Executive Compensation

July 31, 2009

Today, U.S. Rep Ed Perlmutter (CO-07), a member of the House Financial Services Committee voted with a bipartisan majority of the House of Representatives to give shareholders of public companies more of a say in how top corporate executives are paid (Say-on-Pay).



“This bill is a step towards enacting comprehensive financial regulatory reform to make sure we never face another historic financial crisis that depletes the retirement savings of millions, locks businesses out of much-needed credit, and threatens the entire economy,” said Perlmutter. “For years, excessive compensation encouraged risky behavior at large financial firms and gambled with our financial future. This bill reins in risky executive compensation at these firms to protect shareholders, and ultimately the American taxpayer.”



HR 3269, the Corporate and Financial Institution Compensation Fairness Act of 2009, puts an end to incentives encouraging executives at large financial firms to take excessive risks at the expense of their companies, employees and shareholders. It requires federal regulators to monitor inappropriate or risky compensation practices and compels large financial firms to disclose any compensation structures that include incentive-based elements. The bill also gives shareholders at public companies a say on the pay for top executives.