Although Barney Frank's bill would give shareholders a nonbinding vote on executive compensation, opponents worry the votes could carry too much weight.
In a 269-134 decision, the House of Representatives voted to give shareholders a nonbinding, advisory vote on senior executives' pay packages. The bill was passed on Friday despite opposition from business advocates and lack of widespread support for similar shareholder proposals at companies this proxy season.
House Financial Services Committee chairman Barney Frank reintroduced his "say on pay" bill less than two months ago. Considered one of his top priorities, the Massachusetts Democrat quickly pushed the legislation through to the House floor after getting through heated discussions among both political sides of his committee, which passed it 37-29 in late March.
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Proponents of Frank's bill — which failed to get past the committee stage last year — say it simply gives shareholders a venue for voicing their opinion on executive-compensation plans.
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