HR 1664

 
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.
Sponsor: Alan Grayson (D) FL
 
Status: Passed
 
Govit Voted No 100%
H600400M
Gov Voted No 41%
H600400G
 
 
 
 
 
Details
 
 
Take Action:
 
 
 
email congress
 
 
link
 
 
Summary:
3/23/2009--Reported to House amended. Amends the Emergency Economic Stabilization Act of 2008 (EESA) to prohibit a financial institution that receives or has received a direct capital investment under the Troubled Asset Relief Program (TARP) (or with respect to the Federal National Mortgage Association [Fannie Mae], the Federal Home Loan Mortgage Corporation [Freddie Mac], or a federal home loan bank, under the Housing and Economic Recovery Act of 2008) from making a compensation payment (other than a longevity bonus or a payment in the form of restricted stock) to an executive or employee under a pre-existing compensation arrangement, or from entering into a new compensation payment arrangement, while that capital investment remains outstanding, if such compensation: (1) is unreasonable or excessive according to standards established by the Secretary of the Treasury in consultation with the Chairperson of the Congressional Oversight Panel; or (2) includes any bonus or other supplemental payment not directly based upon such standards. Declares such prohibition inapplicable to an institution that did business with a recipient of a direct capital investment under the TARP. Instructs the Secretary, with the approval of the agencies that are members of the Federal Financial Institutions Examination Council, and in consultation with the Chairperson of the Congressional Oversight Panel, to establish standards governing: (1) unreasonable and excessive compensation; and (2) performance-based measures that a financial institution must apply when determining whether it may provide a bonus or retention payment. Requires financial institutions subject to this Act to report annually to the Secretary how many officers, directors, and employees received or will receive total compensation over each of five specified thresholds in that fiscal year. Requires such report to distinguish amounts an institution considers to be a bonus and the reason for such distinction. Defines total compensation as all cash payments (including without limitation salary, bonus, and retention payments), all transfers of property, stock options, sales of stock, and all contributions by the company (or its affiliates) for a person's benefit. States that the identity of persons receiving compensation in such amounts shall not be required in such reports. Directs the Secretary to make such reports available on the Internet. Requires a financial institution, while subject to this Act, to issue: (1) a retrospective annual report for 2008; and (2) both a prospective and retrospective annual report for each subsequent calendar year. States that, for a financial institution that has received or receives a direct capital investment under TARP, while such investment remains outstanding, no otherwise prohibited bonus or other supplemental payment may be paid to employees or executives without regard to when the arrangement to pay such a bonus was entered into.
 
Text of Legislation:

HR 1664 IH

111th CONGRESS

1st Session

H. R. 1664

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

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.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. PROHIBITION ON EXECUTIVE COMPENSATION NOT BASED ON PERFORMANCE STANDARDS.

    (a) Prohibition on Executive Compensation Not Based on Performance Standards- Section 111 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5221) is amended by redesignating subsections (e) through (h) as subsections (f) through (g), and inserting after subsection (d) the following:

    ‘(e) Prohibition on Executive Compensation Not Based on Performance Standards-

      ‘(1) PROHIBITION- No financial institution that has received or receives a capital investment under this title, or with respect to the Federal National Mortgage Association, the Federal Home Loan Montage 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 to any executive or employee under any pre-existing compensation arrangement, or enter into a new compensation payment arrangement, if such compensation payment or compensation payment arrangement--

        ‘(A) provides for compensation that is unreasonable or excessive, as defined in standards established by the Secretary in accordance with paragraph (2); or

        ‘(B) includes any bonus, retention payment, or other supplemental payment that is not directly based on performance-based measures set forth in standards established by the Secretary in accordance with paragraph (2).

      ‘(2) STANDARDS- Not later than 30 days after the date of enactment of this subsection, the Secretary shall establish the following:

        ‘(A) UNREASONABLE AND EXCESSIVE COMPENSATION STANDARDS- Standards that define ‘unreasonable or excessive’ for purposes of subparagraph (1)(A).

        ‘(B) PERFORMANCE-BASED STANDARDS- Standards for performance-based measures that a financial institution must apply when determining whether it may provide a bonus or retention payment under paragraph (1)(B). Such performance measures shall include--

          ‘(i) the stability of the financial institution and its ability to repay or begin repaying the United States for any capital investment received under this title;

          ‘(ii) the performance of the individual executive or employee to whom the payment relates;

          ‘(iii) adherence by executives and employees to appropriate risk management requirements; and

          ‘(iv) other standards which provide greater accountability to shareholders and taxpayers.’.

    (b) Revision to Rule of Construction- Section 111(b)(3)(D)(iii) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5221(b)(3)(D)(iii)) is amended by inserting before the period the following: ‘, except that no entity subject to subsection (e) may pay a bonus to any of its employees or executives, without regard to when the arrangement to pay such a bonus was entered into.’.


Full Text of Legislation
 
Subject Name:
 
All Actions:

Actions Date
Action Text
3/23/2009
Sponsor introductory remarks on measure. (CR E742)
3/23/2009
Referred to the House Committee on Financial Services.
3/26/2009
Committee Consideration and Mark-up Session Held.
3/30/2009
Reported (Amended) by the Committee on Financial Services. H. Rept. 111-64.
3/31/2009
Rules Committee Resolution H. Res. 306 Reported to House. Rule provides for consideration of H.R. 1664 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill.
4/1/2009
Rule H. Res. 306 passed House.
4/1/2009
Considered under the provisions of rule H. Res. 306.
4/1/2009
Rule provides for consideration of H.R. 1664 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill.
4/1/2009
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 306 and Rule XVIII.
4/1/2009
The Speaker designated the Honorable Jesse L. Jackson Jr. to act as Chairman of the Committee.
4/1/2009
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 1664.
4/1/2009
DEBATE - Pursuant to the provisions of H.Res. 306, the Committee of the Whole proceeded with 20 minutes of debate on the Frank amendment.
4/1/2009
DEBATE - Pursuant to the provisions of H.Res. 306, the Committee of the Whole proceeded with 10 minutes of debate on the Cardoza amendment.
4/1/2009
DEBATE - Pursuant ot the provisions of H.Res. 306, the Committee of the Whole proceeded with 10 minutes of debate on the Meeks (NY) amendment.
4/1/2009
DEBATE - Pursuant to the provisions of H.Res. 306, the Committee of the Whole proceeded with 10 minutes of debate on the Bean amendment.
4/1/2009
POSTPONED PROCEEDINGS - At the conclusion of debate on the Bean amendment, the Chair put the question on adoption of the amendment and by voice vote, announced the noes had prevailed. Ms. Bean demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
4/1/2009
DEBATE - Pursuant to the provisions of H.Res. 306, the Committee of the Whole proceeded with 10 minutes of debate on the Bilirakis amendment.
4/1/2009
DEBATE - Pursuant to the provisions of H.Res. 306, the Committee of the Whole proceeded with 10 minutes of debate on the DeFazio amendment.
4/1/2009
DEBATE - Pursuant to the provisions of H.Res. 306, the Committee of the Whole proceeded with 10 minutes of debate on the Dahlkemper amendment.
4/1/2009
POSTPONED PROCEEDINGS - At the conclusion of debate on the Dahlkemper amendment the Chair put the question on adoption of the amendment and by voice vote, announced the noes had prevailed. Mr. Frank (MA) demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
4/1/2009
UNFINISHED BUSINESS - The Chair announced that the unfinished business was the question of adoption of amendments which had been debated earlier and on which further proceedings had been postponed.
4/1/2009
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1664.
4/1/2009
The previous question was ordered pursuant to the rule.
4/1/2009
The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.
4/2/2009
Received in the Senate.
4/1/2009
4/1/2009
On passage Passed by recorded vote: 247 - 171, 1 Present (Roll no. 182).
4/22/2009
Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
 
Titles:

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.
 
Committee:

Referral, Markup, Reporting
 
Related Bill Details:

 
Amendments

 
 
 
 
about govit
 
|
 
contact us
 
|
 
terms of use
 
|
 
privacy policy
 
Govit™ 2008