Synopsis: U.S. House of Representatives Bill 3269, the "Corporate and Financial Institution Compensation Fairness Act of 2009," would, among other items, (i) provide shareholders of public companies with a nonbinding approval vote over executive compensation arrangements, and (ii) direct federal agencies to establish regulations requiring certain financial institutions (including registered and unregistered investment advisers and registered broker-dealers) with assets of $1 billion or more to disclose the structure of their incentive-based compensation arrangements to federal regulators in order to determine whether the arrangements encourage inappropriate risk. The Act would also grant federal agencies the ability to prescribe regulations to prohibit any incentive-based payment arrangement that encourages inappropriate risks by those financial institutions. The full text of the bill is available here.
Status: H.R. 3269 was introduced by Congressman Barney Frank (D-MA) on July 21, 2009 and was passed by the House on July 31, 2009. The legislation was referred to the Senate Committee on Banking, Housing, and Urban Affairs on August 3, 2009.