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HR 3351 IH
111th CONGRESS
1st Session
H. R. 3351
To amend the Securities Exchange Act of 1934 to provide shareholders with a non-binding vote on executive compensation.
IN THE HOUSE OF REPRESENTATIVES
July 27, 2009
Ms. KILROY introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To amend the Securities Exchange Act of 1934 to provide shareholders with a non-binding vote on executive compensation.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. SHAREHOLDER VOTE ON EXECUTIVE COMPENSATION DISCLOSURES.
Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) is amended by adding at the end the following new subsection:
‘(i) Annual Shareholder Approval of Executive Compensation-
‘(1) ANNUAL VOTE- Any proxy or consent or authorization for an annual meeting of the shareholders (or a special meeting in lieu of the annual meeting) occurring on or after the date that is 6 months after the date on which final rules are issued under paragraph (4), shall provide for a separate shareholder vote to approve the compensation of executives as disclosed pursuant to the Commission’s compensation disclosure rules (which disclosure shall include the compensation committee report, the compensation discussion and analysis, the compensation tables, and any related materials). The shareholder vote shall not be binding on the corporation or the board of directors and shall not be construed as overruling a decision by such board, nor to create or imply any additional fiduciary duty by such board, nor shall such vote be construed to restrict or limit the ability of shareholders to make proposals for inclusion in such proxy materials related to executive compensation.
‘(2) SHAREHOLDER APPROVAL OF GOLDEN PARACHUTE COMPENSATION-
‘(A) DISCLOSURE- In any proxy or consent solicitation material for an annual meeting of the shareholders (or a special meeting in lieu of the annual meeting) occurring on or after the date that is 6 months after the date on which final rules are issued under paragraph (4), that concerns an acquisition, merger, consolidation, or proposed sale or other disposition of all or substantially all the assets of an issuer, the person making such solicitation shall disclose in the proxy or consent solicitation material, in a clear and simple tabular form in accordance with regulations to be promulgated by the Commission, any agreements or understandings that such person has with any principal executive officers of such issuer (or of the acquiring issuer, if such issuer is not the acquiring issuer) concerning any type of compensation (whether present, deferred, or contingent) that is based on or otherwise relates to the acquisition, merger, consolidation, sale, or other disposition of all or substantially all of the assets of the issuer that have not been subject to a shareholder vote under paragraph (1), and the aggregate total of all such compensation that may (and the conditions upon which it may) be paid or become payable to or on behalf of such executive officer.
‘(B) SHAREHOLDER APPROVAL- Any proxy or consent or authorization relating to the proxy or consent solicitation material containing the disclosure required by subparagraph (A) shall provide for a separate shareholder vote to approve such agreements or understandings and compensation as disclosed. A vote by the shareholders shall not be binding on the corporation or the board of directors of the issuer or the person making the solicitation and shall not be construed as overruling a decision by such board, nor to create or imply any additional fiduciary duty by such board, nor shall such vote be construed to restrict or limit the ability of shareholders to make proposals for inclusion in such proxy materials related to executive compensation.
‘(3) DISCLOSURE OF VOTES- Every institutional investment manager subject to section 13(f) shall report at least annually how it voted on any shareholder vote unless such vote is otherwise required to be reported publicly by rule or regulation of the Commission.
‘(4) RULEMAKING- Not later than 6 months after the date of enactment of the Investor Voting Fairness Act of 2009, the Commission shall issue rules and regulations to implement this subsection.’.
U.S. Congress - Text of H.R.3351 as Introduced in House Proxy Voting Transparency Act of 2009
