Securities Law Updates | New Proposed Legislation
March 15, 2010
Senate Bill Aims to Hold Corporate Executives Accountable
Corporate Executive Accountability Act of 2010
S. 3049, 2/26/2010
U.S. Senator Robert Menendez (D-NJ), a member of the Banking Committee, has unveiled a legislative package that could bring accountability to corporate governance.
In particular, the legislation would protect Main Street families by 1) giving shareholders a vote on executive pay; 2) ensuring that bad executives are held accountable for their performance and its effects on Main Street; and 3) providing incentives for executives to look out for the long-term viability of the corporation, not just short-term profits and bonuses.
Basic features of the bill include the following:
Give Shareholders a Vote on Executive Pay
• Provide shareholders a non-binding vote…
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View a PDF of the proposed legislation