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For Immediate Release: July 24, 2006

Contact:	Steve Adamske (Frank), 202-225-7141

DEMOCRATS URGE FINANCIAL SERVICES COMMITTEE TO CONSIDER EXECUTIVE COMPENSATION LEGISLATION

Rep. Frank: Congress should debate this important issue

Washington, DC- Democrats on the House Financial Services Committee today called for the support of their Republican colleagues to force the committee to consider-or markup-legislation to require reasonable disclosure and shareholder participation in executive pay structures.   Because Financial Services Committee Mike Oxley did not act on a Democratic request for committee consideration of H.R. 4291, the Protection Against Executive Compensation Abuse Act, Democrats are resorting to an option available under rules of the House and Committee to force a markup.  Simply put, if just three Republicans would join all Democrats and the one Independent member in this effort, the Committee would be forced to schedule a markup.

H.R. 4291 would address the issue of out-of-control executive compensation by requiring greater disclosure by companies and requiring shareholder votes of executive compensation plans and so-called golden parachute retirement packages.  For more information about H.R. 4291, visit http://www.house.gov/financialservices/ExecutiveCompensation.  The text of Mr. Frank's and the Committee Democrats letters are below. 

July 24, 2006

Dear Financial Services Committee Republican Colleague:

As you can see from the attached letter, all Financial Services Committee Democrats (and one Independent) have requested a meeting of the Committee to markup H.R. 4291, the Protection Against Executive Compensation Abuse Act.  As Chairman Oxley has not called the requested meeting, under Clause 2(c)(2) of Rule XI of the Rules of the House of Representatives (and clause (a)(4) of Rule 2 of the Rules for the Committee on Financial Services), a majority of Committee Members can insist on such a mark-up.  Therefore, if three Republican members were to join us in this effort, we would achieve majority support for a markup and the Committee would be able to consider a legislative solution to the important issue of executive compensation. 

As I have discussed with my Democratic colleagues, supporting a markup does not require endorsement of H.R. 4291, or any particular approach.  Instead, as noted in the letter, there may be other approaches to addressing the issue of executive compensation and I would encourage Committee members to raise alternatives in open debate at the markup.  Executive compensation is an important issue that Congress can no longer ignore. 

I urge your support for a mark-up on this important issue.  If you would like to join this effort, please contact me directly, or contact Jaime Lizarraga of my Financial Services Committee staff.   

                                                                                                BARNEY  FRANK

______________________________________________________________________________

July 14, 2006

The Honorable Michael G. Oxley

Chairman

Committee on Financial Services

U.S. House of Representatives

Washington, DC 20515

 

Dear Chairman Oxley:

Pursuant to clause 2(c)(2) of Rule XI of the Rules of the House of Representatives, and clause (a)(4) of Rule 2 of the Rules for the Committee on Financial Services, we hereby request that you call a meeting of the full Committee to mark up the bill, H.R. 4291, the Protection Against Executive Compensation Abuse Act.  

We believe this is an important subject on which the Members of the Committee should have an opportunity to debate, offer any amendments they believe relevant, and vote for or against the proposal as they see fit.  Thank you for your attention to this matter.

Sincerely,

BARNEY  FRANK    PAUL E. KANJORSKI

MAXINE  WATERS    CAROLYN B. MALONEY

LUIS V. GUTIERREZ    NYDIA M. VELAZQUEZ

BRAD  SHERMAN    GARY ACKERMAN

BERNARD  SANDERS    JULIA  CARSON

MELVIN L. WATT    GREGORY W. MEEKS

BARBARA  LEE    DENNIS  MOORE

MICHAEL E. CAPUANO    HAROLD E. FORD, JR.

RUBEN HINOJOSA    JOSEPH CROWLEY

WM. LACY CLAY    STEVE ISRAEL

CAROLYN McCARTHY    JOE BACA

JIM  MATHESON    STEPHEN F. LYNCH

BRAD  MILLER    DAVID  SCOTT

ARTUR  DAVIS    AL GREEN                                       

EMANUEL CLEAVER    MELISSA BEAN

DEBBIE WASSERMAN SCHULTZ    GWEN  MOORE

DARLENE  HOOLEY

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The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund. The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws.