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p>On behalf of nearly 850,000 FreedomWorks members nationwide, I respectfully urge you to VOTE NO on H.R. 1257, the Shareholder Vote on Executive Compensation Act sponsored by Rep. Barney Frank, D-MA. This legislation would amend the Securities Exchange Act of 1934 (15 U.S.C. 78n) and would force corporate shareholders review of executive compensation.
This proposal would require an advisory vote from shareholders of public companies on the compensation of company executives separate from that of the independent board of directors who already rely on shareholder opinion and vote.
While transparency in decisions on executive compensation is necessary, many shareholders already have the right to vote on such packages. It is reported that nearly 60 companies are already set to vote on compensation this year. In addition, this bill would require federal mandates on all company pay packages despite compensation not being an issue for the vast majority of firms.
Moreover, this "one-size-fits-all bill" promotes federal intrusion into the private sector to punish a small handful of executives who could be successfully dealt with through market forces, as shareholders would see less return on their investment. Regulation of business is already a matter determined by state law while federal laws are generally concerned with disclosure of information to investors.
Allowing shareholders to vote on proper compensation for executives is a matter to be determined by each firm individually, not the federal government. Maximization of profit and the wealth that creates for individual shareholders is enough to mandate whether compensation is too high or too low.
We will count your vote on Rep. Frank’s “Shareholder Vote on Executive Compensation Act” as a KEY VOTE when calculating the FreedomWorks Economic Scorecard for 2007. The FreedomWorks Economic Scorecard is used to determine eligibility for the Jefferson Award, which recognizes members of Congress with voting records that support economic freedom.
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