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Jan. 25, 2011

SEC Executive Pay Rules Are a Key Step

Statement of Lisa Gilbert, Deputy Director of Public Citizen’s Congress Watch Division

Today in an expected 3-2 vote, the Securities and Exchange Commission adopted important final rules on “say on pay.” Due to these rules, public companies will now need to submit their executive compensation for a non-binding shareholder vote.

Public Citizen applauds this as an important step following the passage of Wall Street reform legislation.

Investors who own shares in a company should have a say in the compensation of their executives and on the golden parachutes given to departing CEOs.

This rulemaking is a key step in the right direction toward stopping the billion-dollar bonuses that incentivize risk and destabilize our economy.


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