Shareholders would have the right to a nonbinding vote on the pay packages of senior executives of public companies under a bill that the House began debating Wednesday.
The measure would also give shareholders the right to vote on any “golden parachute” compensation plans that are awarded to executives while they are negotiating the purchase or sale of a company.
The measure is sponsored by Representative Barney Frank, Democrat of Massachusetts, and has been largely supported by Democrats and opposed by Republicans. It is expected to be approved by the House by the end of the week.
But it faces significant political obstacles. There is no comparable measure in the Senate. And this week, the White House issued a statement opposing the legislation, saying it “does not believe that Congress should mandate the process by which executive compensation is approved.”
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