California Shareholder Approval of Compensation Act (2008)

From Ballotpedia
Jump to: navigation, search
Not on Ballot
Proposed allot measures that were not on a ballot
This measure did not or
will not appear on a ballot

The Shareholder Approval of Compensation Act (07-0045) was an initiated state statute whose supporters were hoping that it would qualify for the November 2008 general election ballot in California. In order for that to happen, the supporters would have had to turn in 433,971 valid signatures by March 3, 2008.

In mid-March 2008, the California Secretary of State announced that the measure had failed to qualify for the November 2008 ballot.

The initiative is popularly known as the "No Say, No Pay" Act.

What this initiative would do, if it becomes law, is prohibit publicly traded companies that do business in California from initiating or revising any agreement relating to compensation of its directors or its ten highest paid executives without approval of a majority of its shareholders.

Specifically, it:

  • Prohibits publicly traded companies doing business in California from initiating or revising any agreement relating to compensation of its directors or its ten highest paid executives without approval by a majority of its shareholders.
  • Establishes liability for directors who make compensation agreements without required shareholder approval.
  • Requires public companies to collect and report additional information regarding executive compensation and employee pay and benefits.
  • Requires that specified compensation and benefit information be filed with the Secretary of State, included in annual reports to shareholders, and posted on each corporation’s website.

Proponents

James C. Harrison
Margaret R. Prinzing
Remcho, Johansen & Purcell, LLP

Fiscal impact estimate

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:

Probably negligible one-time state costs to modify the forms that corporations use to annually report certain information.

External links

References