Press Releases

Washington, D.C. – Today, Congressman Donald M. Payne voted to protect American taxpayers and shareholders from the excessive and risky compensation practices at big financial firms that contributed to the collapse of the financial markets in the fall of 2008. The Corporate and Financial Institution Compensation Fairness Act, HR 3269, is the first piece of a larger regulatory reform package the US House of Representatives will take up in this fall to fulfill our commitment to rebuild our economy stronger and restore Americans’ faith in our financial system.

"For years, excessive compensation encouraged risky behavior at large financial firms and gambled with our financial future," said Payne. "This bill reins in risky executive compensation at these firms to protect shareholders, and ultimately the American taxpayer, from the kind of financial ruin we saw last year."

The Corporate and Financial Institution Compensation Fairness Act puts an end to the perverse incentives that encourage executives at large financial firms to take excessive risks at the expense of their companies, employees and shareholders. It requires federal regulators to monitor inappropriate or risky compensation practices and compels large financial firms to disclose any compensation structures that include incentive-based elements. The bill also gives shareholders at public companies a say on the pay for top executives.

"This bill is an important part of our broader economic strategy," said Payne. "We are working to rebuild our economy stronger than it was before. Regulatory reform is absolutely crucial to that effort."

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