H.R. 4291

“Protection Against Executive Compensation Abuse Act”

SUMMARY

The Securities and Exchange Commission (SEC) has issued a Notice of Proposed Rulemaking (NPRM) requiring the pay of executives to be made fully transparent. Follow this link to view comments that have already been submitted on the issue.

By requiring greater transparency in executive pay, the SEC aims to give the shareholder, and the general public, more access to the boardroom decision-making process. As executive pay steadily increased, the pay of the rank-and-file worker has remained stagnant, and, while greater transparency does not necessarily signify the end of the golden parachute era, this is a good start.

U.S. Representative Barney Frank (D-MA) has introduced legislation, H.R. 4291, to accompany this proposed rule change.

WHAT YOU CAN DO

AMFA members must call their representatives in Congress. Ask them to support H.R. 4291 and, if they have not done so already, to cosponsor it.