"The bill does not set pay limits. Instead, it gives shareholders the right to vote on pay and requires that independent directors from outside of management serve on compensation committees.
The shareholder votes would not be binding on company management.
The measure tries to reduce the potential conflicts of interest involving compensation consultants who play a central role in blessing pay packages. Many of those consultants also provide other services to the companies, putting them in a conflicting role for issuing fairness opinions about pay."
Wednesday, July 29, 2009
House Panel Approves Restraints on Executive Pay - NYTimes.com: