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Next you'll be telling me that if he hadn't been "asked", he would have stepped down anyway.
Yep, he was planning to step down any day now, long before the President of the United States "asked" him to. It was just happy coincidence that Obama showed up on his doorstep at the exact time he was about to make the decision on his own anyway.
Yup, yup, uh-huh.
So what, he agreed to it didn't he? If he had done something wrong, surely he would've fought it, don't you think? Admit it, they screwed up big time, they need to be accounted for.
Again, union leaders of these companies, are not making 10 million to 30 million a year and getting 20 to 40 million in "severage packages".
Common sense, ok.
Maybe your point would hold water if you talked about "union leaders" making 20 to 30 millon dollars a year, like a few pro athletes or some actors.
Again, I never said the CEO's didn't have a role, but unions are a player as well. Yes the CEO makes a lot more than union workers, not more than all union workers. While your common sense argument makes sense, it ignores that we are talking about a company which is made up of many parts and all of those parts are relevant.
Not at all. I want them to restructure to be a viable company rather than live off of tax dollars. For some, CEO's need to go, salaries need to be cut, engineers need to go, middle management etc., and the unions contracts have to be considered as well. You seem to have an us versus them attitude about this, while I'm saying the company is not working as is and needs to be fixed.
I agree with this completely.
As far as the OP goes, Obama has already stated that union members need to make concessions.
"the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees -- not just top executives -- of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. "
Be it enacted by the Senate and House of Representa2
tives of the United States of America in Congress assembled,
3 SECTION 1. PROHIBITION ON CERTAIN COMPENSATION.
4 (a) PROHIBITION ON CERTAIN COMPENSATION NOT
5 BASED ON PERFORMANCE STANDARDS.—Section 111 of the
6 Emergency Economic Stabilization Act of 2008 (12 U.S.C.
7 5221) is amended by redesignating subsections (e) through
8 (h) as subsections (f) through (i), and inserting after sub9
section (d) the following:
10 ‘‘(e) PROHIBITION ON CERTAIN COMPENSATION NOT
11 BASED ON PERFORMANCE STANDARDS.—
12 ‘‘(1) PROHIBITION.—No financial institution
that has received or receives a direct capital invest
ment under the Troubled Assets Relief Program under
this title, or with respect to the Federal National
Mortgage Association, the Federal Home Loan Mort
gage Corporation, or a Federal home loan bank,
under the amendments made by section 1117 of the
Housing and Economic Recovery Act of 2008, may,
while that capital investment remains outstanding,
make a compensation payment, other than a lon
gevity bonus or a payment in the form of restricted
stock, to any executive or employee under any exist
ing compensation arrangement, or enter into a new
compensation payment arrangement, if such com-
pensation payment or compensation payment ar
rangement—
‘‘(A) provides for compensation that is un
reasonable or excessive, as defined in standards
established by the Secretary, in consultation with
the Chairperson of the Congressional Oversight
Panel established under section 125, in accord
ance with paragraph (2); or
Be it enacted by the Senate and House of Representa2
tives of the United States of America in Congress assembled,
3 SECTION 1. PROHIBITION ON CERTAIN COMPENSATION.
4 (a) PROHIBITION ON CERTAIN COMPENSATION NOT
5 BASED ON PERFORMANCE STANDARDS.—Section 111 of the
6 Emergency Economic Stabilization Act of 2008 (12 U.S.C.
7 5221) is amended by redesignating subsections (e) through
8 (h) as subsections (f) through (i), and inserting after sub9
section (d) the following:
10 ‘‘(e) PROHIBITION ON CERTAIN COMPENSATION NOT
11 BASED ON PERFORMANCE STANDARDS.—
12 ‘‘(1) PROHIBITION.—No financial institution
that has received or receives a direct capital invest
ment under the Troubled Assets Relief Program under
this title, or with respect to the Federal National
Mortgage Association, the Federal Home Loan Mort
gage Corporation, or a Federal home loan bank,
under the amendments made by section 1117 of the
Housing and Economic Recovery Act of 2008, may,
while that capital investment remains outstanding,
make a compensation payment, other than a lon
gevity bonus or a payment in the form of restricted
stock, to any executive or employee under any exist
ing compensation arrangement, or enter into a new
compensation payment arrangement, if such com-
pensation payment or compensation payment ar
rangement—
‘‘(A) provides for compensation that is un
reasonable or excessive, as defined in standards
established by the Secretary, in consultation with
the Chairperson of the Congressional Oversight
Panel established under section 125, in accord
ance with paragraph (2); or
Union Calendar No. 28
111TH CONGRESS
1ST SESSION H. R. 1664 [Report No. 111–64]
To amend the executive compensation provisions of the Emergency Economic
Stabilization Act of 2008 to prohibit unreasonable and excessive compensation
and compensation not based on performance standards.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 2009
Mr. GRAYSON (for himself, Mr. HIMES, Ms. LEE of California, Mr. WELCH,
Mr. ELLISON, Mr. ORTIZ, Mr. PERRIELLO, Ms. JACKSON-LEE of Texas,
and Mr. CONNOLLY of Virginia) introduced the following bill; which was
referred to the Committee on Financial Services
MARCH 30, 2009
Additional sponsor: Ms. FUDGE
MARCH 30, 2009
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 23, 2009] A BILL
To amend the executive compensation provisions of the
Emergency Economic Stabilization Act of 2008 to prohibit
unreasonable and excessive compensation and compensation
not based on performance standards.
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2
•HR 1664 RH
1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
3 SECTION 1. PROHIBITION ON CERTAIN COMPENSATION.
4 (a) PROHIBITION ON CERTAIN COMPENSATION NOT
5 BASED ON PERFORMANCE STANDARDS.—Section 111 of the
6 Emergency Economic Stabilization Act of 2008 (12 U.S.C.
7 5221) is amended by redesignating subsections (e) through
8 (h) as subsections (f) through (i), and inserting after sub9 section (d) the following:
10 ‘‘(e) PROHIBITION ON CERTAIN COMPENSATION NOT
11 BASED ON PERFORMANCE STANDARDS.—
12 ‘‘(1) PROHIBITION.—No financial institution
13 that has received or receives a direct capital invest14 ment under the Troubled Assets Relief Program under
15 this title, or with respect to the Federal National
16 Mortgage Association, the Federal Home Loan Mort17 gage Corporation, or a Federal home loan bank,
18 under the amendments made by section 1117 of the
19 Housing and Economic Recovery Act of 2008, may,
20 while that capital investment remains outstanding,
21 make a compensation payment, other than a lon22 gevity bonus or a payment in the form of restricted
23 stock, to any executive or employee under any exist24 ing compensation arrangement, or enter into a new
25 compensation payment arrangement, if such com-
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3
•HR 1664 RH
1 pensation payment or compensation payment ar2 rangement—
3 ‘‘(A) provides for compensation that is un4 reasonable or excessive, as defined in standards
5 established by the Secretary, in consultation with
6 the Chairperson of the Congressional Oversight
7 Panel established under section 125, in accord8 ance with paragraph (2); or
9 ‘‘(B) includes any bonus or other supple10 mental payment that is not directly based on
11 performance-based measures set forth in stand12 ards established by the Secretary in accordance
13 with paragraph (2).
14 Provided that, nothing in this paragraph applies to
15 an institution that did business with a recipient of a
16 direct capital investment under the TARP.
17 ‘‘(2) STANDARDS.—Not later than 30 days after
18 the date of enactment of this subsection, the Secretary,
19 with the approval of the agencies that are members of
20 the Federal Financial Institutions Examination
21 Council, and in consultation with the Chairperson of
22 the Congressional Oversight Panel established under
23 section 125, shall establish the following:
24 ‘‘(A) UNREASONABLE AND EXCESSIVE COM25 PENSATION STANDARDS.—Standards that define
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4
•HR 1664 RH
1 ‘unreasonable or excessive’ for purposes of sub2 paragraph (1)(A).
3 ‘‘(B) PERFORMANCE-BASED STANDARDS.—
4 Standards for performance-based measures that
5 a financial institution must apply when deter6 mining whether it may provide a bonus or reten7 tion payment under paragraph (1)(B). Such
8 performance measures shall include—
9 ‘‘(i) the stability of the financial insti10 tution and its ability to repay or begin re11 paying the United States for any capital
12 investment received under this title;
13 ‘‘(ii) the performance of the individual
14 executive or employee to whom the payment
15 relates;
16 ‘‘(iii) adherence by executives and em17 ployees to appropriate risk management re18 quirements; and
19 ‘‘(iv) other standards which provide
20 greater accountability to shareholders and
21 taxpayers.
22 ‘‘(3) REPORTING REQUIREMENT.—
23 ‘‘(A) IN GENERAL.—Any financial institu24 tion that is subject to the requirements of para25 graph (1) shall, not later than 90 days after the
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5
•HR 1664 RH
1 date of enactment of this subsection and annu2 ally on March 31 each year thereafter, transmit
3 to the Secretary, who shall make a report which
4 states how many persons (officers, directors, and
5 employees) received or will receive total com6 pensation in that fiscal year in each of the fol7 lowing amounts:
8 ‘‘(i) over $500,000;
9 ‘‘(ii) over $1,000,000;
10 ‘‘(iii) over $2,000,000;
11 ‘‘(iv) over $3,000,000; and
12 ‘‘(v) over $5,000,000.
13 The report shall distinguish amounts the institu14 tion considers to be a bonus and the reason for
15 such distinction. The name or identity of persons
16 receiving compensation in such amounts shall
17 not be required in such reports. The Secretary
18 shall make such reports available on the Internet.
19 Any financial institution subject to this para20 graph shall issue a retrospective annual report
21 for 2008 and both a prospective and retrospective
22 annual report for each subsequent calendar year
23 until such institution ceases to be subject to this
24 paragraph.
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6
•HR 1664 RH
1 ‘‘(B) TOTAL COMPENSATION DEFINED.—For
2 purposes of this paragraph, the term ‘total com3 pensation’ includes all cash payments (including
4 without limitation salary, bonus, retention pay5 ments), all transfers of property, stock options,
6 sales of stock, and all contributions by the com7 pany (or its affiliates) for that person’s benefit.’’.
8 (b) REVISION TO RULE OF CONSTRUCTION.—Section
9 111(b)(3)(D)(iii) of the Emergency Economic Stabilization
10 Act of 2008 (12 U.S.C. 5221(b)(3)(D)(iii)) is amended by
11 inserting before the period the following: ‘‘, except that an
12 entity subject to subsection (e) may not, while a capital in13 vestment described in that subsection remains outstanding,
14 pay a bonus or other supplemental payment that is other15 wise prohibited by clause (i) without regard to when the
16 arrangement to pay such a bonus was entered into’’.
VerDate Nov 24 2008 23:37 Mar 30, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H1664.RH H1664 wwoods2 on PRODPC68 with BILLS
VerDate Nov 24 2008 23:37 Mar 30, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H1664.RH H1664 wwoods2 on PRODPC68 with BILLS Union Calendar No. 28
111TH CONGRESS
1ST SESSION H. R. 1664 [Report No. 111–64] A BILL
To amend the executive compensation provisions of
the Emergency Economic Stabilization Act of
2008 to prohibit unreasonable and excessive compensation
and compensation not based on performance
standards.
MARCH 30, 2009
Reported with an amendment, committed to the Committee
of the Whole House on the State of the Union,
and ordered to be printed
I'm unclear on what your pointing out. From what I see in the bill, each time it mentions executives it says or employee afterwards. I can certainly be missing something, but I'm not seeing what it is.
I'm unclear on what your pointing out. From what I see in the bill, each time it mentions executives it says or employee afterwards. I can certainly be missing something, but I'm not seeing what it is.
Its the entire bill and it breaks down the compensation levels. An Executive is an employee are they not, be it CEO, CFO, President, VP, Director. The bill is vague and once again their pigeon holing themselves into a clarity issue.
Its the entire bill and it breaks down the compensation levels. An Executive is an employee are they not, be it CEO, CFO, President, VP, Director. The bill is vague and once again their pigeon holing themselves into a clarity issue.
Sure, executives are employees, but so are non-executives.
Yes, it does seem vague.
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