Congresswoman Waters Votes to Protect Taxpayers, Shareholders by Reining in Executive Compensation

Congresswoman Maxine Waters (D-CA) voted today to protect American taxpayers and shareholders from the excessive and risky compensation practices at big financial firms.  These practices contributed to the collapse of the financial markets last fall and subsequently triggered an economic meltdown felt by millions of hard-working Americans. The Corporate and Financial Institution Compensation Fairness Act is the first piece of a larger regulatory reform package the House will take up in the fall to fulfill its commitment to rebuild the economy and restore Americans' faith in the financial system.  

"For years, large financial firms have gambled with our financial future because their salary and bonus structures encouraged risky behavior," said Congresswoman Waters. "This bill reins in executive compensation at these firms to protect shareholders, and ultimately American taxpayers, 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 strategy to rebuild the economy and make it stronger and safer than it was before, as we continue to experience foreclosures, layoffs and soaring costs of health care and education. Regulatory reform is absolutely crucial to that effort," said Congresswoman Waters, a senior member of the House Financial Services Committee.

"Moving forward, I will continue to lead efforts to create the Consumer Financial Protection Agency, a vital component of any meaningful regulatory reform meant to protect American consumers from deceptive and confusing financial products and practices like risky mortgages and unfair credit card fees."

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