Wall Street Desperately Trying to Kill Law That Could Curb Obscene CEO Pay
By Sam Pizzigati, Blog for Our Future
Sometimes lobbyists – even the most perfectly coiffed – mess up. Lobbyists for Corporate America messed up big-time last summer. They let slip into law, via the 2,300-page Dodd-Frank financial reform bill, an obscure provision that could give future lawmakers a powerful lever for ratcheting down excessive CEO pay.
Now those lobbyists are pushing hard to undo their mistake – and progressives, led by AFL-CIO president Rich Trumka, are pushing back.
The winner won’t be clear until later this year when the Securities and Exchange Commission, the federal watchdog agency over Wall Street, releases the final regulations that will enforce the Dodd-Frank legislation.
That legislation includes an assortment of provisions that impact executive pay. One of these – “say on pay” – has been receiving a good bit of media attention. This “say on pay” guarantees shareholders a regular opportunity to cast “advisory” votes on the CEO pay packages that corporate boards produce.