New Jersey-2010-ACR121-Introduced

Sponsored by:

Assemblywoman ANNETTE QUIJANO

District 20 (Union)

Assemblyman GARY S. SCHAER

District 36 (Bergen, Essex and Passaic)

Assemblywoman ELEASE EVANS

District 35 (Bergen and Passaic)

SYNOPSIS

Memorializes Congress to enact the "Corporate Executive Accountability Act of 2010."

CURRENT VERSION OF TEXT

As introduced.

A Concurrent Resolution memorializing Congress to enact the "Corporate Executive Accountability Act of 2010."

Whereas, It is incumbent upon Congress to enact legislation that ensures the accountability of corporations, especially financial institutions on Wall Street, to their shareholders and the families and businesses across the country; and

Whereas, The risky business behaviors preceding the most recent recession that resulted in unprecedented losses on subprime mortgage-backed securities and credit default swaps, and have required the federal government's assistance to maintain the viability of many corporations, as well as the excesses that resulted in the payout of mega-bonuses to corporate executives in light of unprecedented losses, have served to create economic hardships for families and businesses across the country; and

Whereas, Financial institutions that have experienced unprecedented losses and have required the federal government's assistance to remain viable should be required to use those funds responsibly during a time of crisis in financial markets, rather than distributing extravagant employee bonuses that seriously offend American taxpayers at a time when they face the crippling pains of unemployment and mortgage foreclosure; and

Whereas, On February 26, 2010, United States Senator Robert Menendez introduced the "Corporate Executive Accountability Act of 2010," S.3049, a bill which would give shareholders a voice and help protect families and businesses across the country; and

Whereas, S.3049 would provide shareholders a non-binding vote on whether a proposed executive pay should be approved, and requires companies to disclose the ratio of CEO pay to the median company worker pay in their annual report; and

Whereas, This bill would ensure that executives are held accountable for risky business behavior by providing regulators and investors the authority to seize bonuses from corporate executives who engage in misconduct, and prohibit executives from receiving a "golden parachute" or other generous severance package when they are fired for cause; and

Whereas, The bill would also provide incentives to executives for placing long-term viability over short-term profits by preventing publicly-listed company executives from cashing out all of their vested equity compensation at once, and instead only allowing them to cash out their vested equity compensation at a rate of 20 percent per year over a five year period; and

Whereas, It is altogether fitting and proper and in the public interest for this Legislature to memorialize the United States Congress to enact the "Corporate Executive Accountability Act of 2010," so that corporations are held accountable for their management practices and help ensure their long-term viability; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The United States Congress is memorialized to enact the "Corporate Executive Accountability Act of 2010," S.3049, introduced by Senator Robert Menendez on February 26, 2010.

2. Duly authenticated copies of this resolution, signed by the President of the Senate and the Speaker of the General Assembly and attested to by the Secretary of the Senate and the Clerk of the General Assembly, shall be transmitted to the President and Vice President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Majority and Minority Leaders of the United States House of Representatives, and each member of the United States Congress elected from this State.

STATEMENT

This concurrent resolution memorializes the United States Congress to enact the "Corporate Executive Accountability Act of 2010," S.3049, introduced by Senator Robert Menendez on February 26, 2010.

It is in the public interest for Congress to enact legislation that ensures the accountability of corporations, especially financial institutions on Wall Street, to their shareholders and families and businesses across the country.

S.3049 would help protect families and businesses across the country by providing shareholders a voice in determining executive pay, ensuring that executives are held accountable for risky business behavior, and providing executives incentives for placing long-term viability over short-term profits.