Ed Markey: “the ``Shareholder Vote on Executive Compensation Act'' is a bill whose time has come, and I am pleased to rise in strong…”

“the ``Shareholder Vote on Executive Compensation Act'' is a bill whose time has come, and I am pleased to rise in strong support of this important legislation. According to the Congressional Research Service (CRS), in the past ten years, CEO pay has more than doubled, and the ratio of median CEO pay to worker pay has risen to 179 to 1. The escalation in executive pay raises significant issues, including the equity of widening income disparities and the potential that such extraordinary CEO salaries may be a result of inefficient labor markets. The bill before the House today provides a balanced, pro-market approach to this addressing issue. Specifically, the nonbinding advisory vote mandated in this bill will give shareholders a mechanism for supporting or opposing their company's executive compensation practices without diminishing the board's legal authority. Such a vote will signal to the board, without tying its hands, that the individuals who actually own the firm will hold the board accountable for CEO pay packages, which should give board members some pause before approving excessive compensation plans. H.R. 1257 does not cap, limit or change any CEO's pay. Rather, it simply requires that shareholders have a ``nonbinding'' say on their company's salary decisions. Moreover, the SEC already requires companies to disclose compensation.…”