"Congress Considers 'Say on Pay' and Further 'Nudges' on Compensation Committee Independence"

On July 21, 2009, Congressman Barney Frank (D-MA) released a discussion draft of proposed legislation entitled the “Corporate and Financial Institutions Compensation Fairness Act of 2009” (the “Proposed Bill”).  On July 29, 2009, the Proposed Bill cleared the House Committee on Financial Services and was passed by the House of Representatives this past Friday.  Although the Proposed Bill overlaps substantially with a proposal on the same subject by the Obama Administration, spearheaded by Treasury, it contains some additional provisions targeted specifically at financial institutions.  Those provisions will be the subject of a separate forthcoming Stroock Special Bulletin, whereas this Stroock Special Bulletin focuses on the Proposed Bill’s application to public companies generally.