H.R 1257 Shareholder Vote on Executive Compensation Act | In NewRetirement's Questions & Answers Forum

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H.R 1257 Shareholder Vote on Executive Compensation Act
H.R. 1257 would require all companies that trade stock on public exchanges to allow shareholders to vote annually to approve the compensation received by executives. Additionally, public companies, in the event of a proposed sale, acquisition, merger, or consolidation, would be required to allow shareholders to vote on compensation agreements between the entity acquiring the company and principal executive officers of the company to be acquired. In either case, the results of the shareholder votes would not be binding on the board of directors, and would apply only to the shareholders' meetings occurring on or after January 1, 2009. The bill would require the Securities and Exchange Commission (SEC) to develop regulations to implement the bill's requirements. H.R. 1257 would impose private-sector mandates, as defined in the Unfunded Mandates Reform Act (UMRA), on publicly traded companies and entities making certain proposals by proxy solicitation. The bill would require them, beginning January 1, 2009 to allow a nonbinding vote by shareholders on certain executive compensation and to make certain disclosures related to such compensation. The bill also would require any entity making a proposal by proxy solicitation regarding a requisition, merger, sale, or other disposition of substantially all the assets of an issuer, to disclose in the solicitation materials any agreements or understandings concerning any tyoe of conpensation, such as golden parachutes, related to the disposition. In addition the bill would require those entities to allow a seperate shareholder vote to approve such agreements or understandings in the proxy materials containing the disclosure. Impact: It pays to read the solicitation information. Remember that the compensation package can significantly reduce the assets of a company, particularly the retirement or severence package.
	asked by grandpa24551, 4/14/2007
Categories: Estate Planning, Retirement Assets, Financial Planning for Retirement

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