Frequently, the pay that corporate chief executives receive has little connection with the performance of the companies they lead. A case in point is the compensation packages of CEOs at many of the financial services companies that were most involved in the subprime mortgage market. Unfortunately, shareholders do not have a meaningful voice in the way boards of directors establish and approve executive pay and thus cannot ensure a link between CEO pay and corporate performance.
In order for shareholders to have a voice in the process, Congress needs to pass a "say on pay" law requiring publicly traded companies to submit executive pay plans to a nonbinding shareholder vote each year. Such an advisory vote would prompt corporate boards to engage shareholders in meaningful conversations about appropriate levels of executive pay before approving executive pay. In short, "say on pay" legislation would provide a cost-effective and efficient way to curb excessive executive pay and encourage long-term value creation at public companies.
Please send a message to your senators today and urge them to support giving shareholders a "say on pay."
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Some corporate chief executives have taken home millions of dollars by encouraging lending practices that may result in real estate foreclosures. These lending practices include loans with low down payments and low, "teaser" interest rates that balloon after a short period so that mortgages become unaffordable.
We need to take action to help homeowners and to limit the economic fallout from these lending practices. Now is the time to let lawmakers know what provisions they must include in legislation to ensure it eases the financial stress of the millions of homeowners who were encouraged to take on these risky mortgages. The AFL-CIO believes that any legislation that Congress passes must include the following provisions:
—An immediate short-term moratorium on home foreclosures.
—A conversion of the low, "teaser" interest rates on home loans to the standard 30-year fixed mortgage.
—Expanding Chapter 13 bankruptcy court protection to enable homeowners to shield their primary residences from foreclosures.
Please send a message to your senators and representative today to urge them to include these critical provisions in the legislation Congress passes.
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