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.
Lisa Gilbert is deputy director of Public Citizen’s Congress Watch division.