U.S. Congressman Barney Frank (D-MA) has circulated a “discussion draft” on “say on pay” to members of the Financial Services Committee, which he chairs.
The draft, titled the “Corporate and Financial Institution Compensation Fairness Act of 2009,” is based on “say-on-pay” legislation that passed the House in 2007 and legislative proposals released yesterday by the Treasury Department.
In a statement issued late Friday, Frank said that the committee plans to mark up legislation on executive pay this week.
The draft calls for annual shareholder advisory votes on executive compensation and golden parachutes, would require that all compensation committees be made up of independent directors, and that compensation consultants “satisfy independence criteria” to be newly established by the Securities and Exchange Commission.
A full text of the draft can be viewed by clicking here.