Rep. Barney Frank Holds a Hearing On Executive Compensation

Extract

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Rep. Barney Frank Holds a Hearing On Executive Compensation

(CORRECTED COPY: CORRECTS SPEAKERS LIST)

HOUSE COMMITTEE ON FINANCIAL SERVICES HOLDS A HEARING ON EMPOWERING SHAREHOLDERS ON EXECUTIVE COMPENSATION

MARCH 8, 2007

SPEAKERS: REP. BARNEY FRANK, D-MASS. CHAIRMAN REP. PAUL E. KANJORSKI, D-PA. REP. MAXINE WATERS, D-CALIF. REP. CAROLYN B. MALONEY, D-N.Y. REP. LUIS V. GUTIERREZ, D-ILL. REP. NYDIA M. VELAZQUEZ, D-N.Y. REP. MELVIN WATT, D-N.C. REP. GARY L. ACKERMAN, D-N.Y. REP. JULIA CARSON, D-IND. REP. BRAD SHERMAN, D-CALIF. REP. GREGORY W. MEEKS, D-N.Y. REP. DENNIS MOORE, D-KAN. REP. MICHAEL E. CAPUANO, D-MASS. REP. RUBEN HINOJOSA, D-TEXAS REP. WILLIAM LACY CLAY, D-MO. REP. CAROLYN MCCARTHY, D-N.Y. REP. JOE BACA, D-CALIF. REP. STEPHEN F. LYNCH, D-MASS. REP. BRAD MILLER, D-N.C. REP. DAVID SCOTT, D-GA. REP. AL GREEN, D-TEXAS REP. EMANUEL CLEAVER II, D-MO. REP. MELISSA BEAN, D-ILL. REP. GWEN MOORE, D-WISC. REP. LINCOLN DAVIS, D-TENN. REP. ALBIO SIRES, D-N.J. REP. PAUL W. HODES, D-N.H. REP. KEITH ELLISON, D-MINN. REP. RON KLEIN, D-FLA. REP. TIM MAHONEY, D-FLA. REP. CHARLIE WILSON, D-OHIO REP. ED PERLMUTTER, D-COLO. REP. CHRISTOPHER S. MURPHY, D-CONN. REP. JOE DONNELLY, D-IND. REP. ROBERT WEXLER, D-FLA. REP. JIM MARSHALL, D-GA. REP. DAN BOREN, D-OKLA.

REP. SPENCER BACHUS, R-ALA. RANKING MEMBER REP. RICHARD H. BAKER, R-LA. REP. DEBORAH PRYCE, R-OHIO REP. MICHAEL N. CASTLE, R-DEL. REP. PETER T. KING, R-N.Y. REP. ED ROYCE, R-CALIF. REP. FRANK D. LUCAS, R-OKLA. REP. RON PAUL, R-TEXAS REP. PAUL E. GILLMOR, R-OHIO REP. STEVEN C. LATOURETTE, R-OHIO REP. DONALD MANZULLO, R-ILL. REP. WALTER B. JONES, R-N.C. REP. JUDY BIGGERT, R-ILL. REP. CHRISTOPHER SHAYS, R-CONN. REP. GARY G. MILLER, R-CALIF. REP. SHELLEY MOORE CAPITO, R-W.VA. REP. TOM FEENEY, R-FLA. REP. JEB HENSARLING, R-TEXAS REP. SCOTT GARRETT, R-N.J. REP. GINNY BROWN-WAITE, R-FLA. REP. J. GRESHAM BARRETT, R-S.C. REP. RICK RENZI, R-ARIZ. REP. JIM GERLACH, R-PA. REP. STEVE PEARCE, R-N.M. REP. RANDY NEUGEBAUER, R-TEXAS REP. TOM PRICE, R-GA. REP. GEOFF DAVIS, R-KY. REP. PATRICK T. MCHENRY, R-N.C. REP. JOHN CAMPBELL, R-CALIF. REP. ADAM H. PUTNAM, R-FLA. REP. MARSHA BLACKBURN, R-TENN. REP. MICHELE BACHMANN, R-MINN. REP. PETER ROSKAM, R-ILL.

WITNESSES: NELL MINOW, EDITOR, THE CORPORATE LIBRARY

LUCIAN BEBCHUK, PROFESSOR, HARVARD LAW SCHOOL

STEPHEN DAVIS, FELLOW, MILLSTEIN CENTER FOR GOVERNANCE AND PERFORMANCE

RICHARD FERLAUTO, DIRECTOR OF PENSION AND BENEFIT POLICY, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES

STEVEN KAPLAN, PROFESSOR OF ENTREPRENEURSHIP AND FINANCE, UNIVERSITY OF CHICAGO GRADUATE SCHOOL OF BUSINESS

JOHN CASTELLANI, PRESIDENT, THE BUSINESS ROUNDTABLE

[*] FRANK: The hearing of the Committee on Financial Services will come to order.

The procedures that we worked out, the ranking member and myself, are that we will each have 10 minutes on each side for opening statements. The 10 minutes will be divided on our side between myself and the gentleman from Georgia, Mr. Scott. The 10 minutes on the minority side will be divided as the ranking member so chooses. I will begin with my statement in a minute.

This is a hearing on the subject of executive compensation. And I will begin -- I was struck as I came in with a document I was handed that says salaries should be set by market forces, not government regulation. I agree. And if anyone finds a bill where by government regulation we set salaries, call me. I will help you stamp it out.

I would also try to stamp out absolutely misleading, false and incorrect arguments. But the first amendment intrudes, fortunately. I am a great believer of people's right to say outrageously inaccurate things. We have an example of it here. There have been past efforts to...

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