Number: RS22583
Title: Executive Compensation: SEC Regulations and Congressional Proposals
Authors: Michael V. Seitzinger, American Law Division 
Abstract: Concern about shareholder value, corporate governance, and the economic and social impact of escalating pay for corporate executives has led to a controversy regarding the practices of paying these executives. On July 26, 2006, the Securities and Exchange Commission voted to adopt revisions to its rules on disclosure of executive compensation. On December 22, 2006, the SEC announced that it had adopted changes in the July 26 rules. These December 22 changes have become somewhat controversial, with opponents saying that they obfuscate executive compensation and with proponents saying that the changes are necessary to give a truly accurate picture of executive compensation. Congressional proposals have been made concerning stockholder advisory approval of executive compensation and limiting the amount of deferred compensation for tax purposes. One of the major proposals in the 110th Congress is H.R. 1257. On March 28, 2007, the House Financial Services Committee voted to report out H.R. 1257, which would require public companies to give their shareholders an advisory vote on executive compensation. On April 20, 2007, the House passed H.R. 1257. On April 20, 2007, S. 1181, which is very similar to H.R. 1257, was introduced and referred to the Senate Committee on Banking, Housing, and Urban Affairs. On April 15, 2008, S. 2866, the Corporate Executive Compensation Accountability and Transparency Act, was introduced and referred to the Committee on Finance. In the 110th Congress two laws containing executive compensation provisions were enacted: P.L. 110-289, the Housing and Economic Recovery Act of 2008, and P.L. 110-343, the Emergency Economic Stabilization Act of 2008.
Pages: 4
Date: December 8, 2008