Votes on pay short on impact

WASHINGTON, April 8 (UPI) -- Bailed out U.S corporations are pushing to put executive pay packages in front of shareholders for votes to comply with new federal guidelines.

Many are scrambling to do so. But, the Securities and Exchange Commission in late February clarified the order, saying the mandate applied to any firm with Troubled Asset Relief Program funds that filed proxy statements after Feb. 17, when the U.S. stimulus package was signed into law, The Washington Post reported Wednesday.

Compensation consulting firm Compensia reported 80 percent of the 211 banks that accepted TARP funds are preparing to put the issue to a vote at their next shareholders' meeting.

With the votes non-binding and a recent uproar concerning bonus pay given to executives at companies with huge losses still reverberating in Washington, however, legislatures are contemplating more substantial measures, the Post said.

"Say on pay might be too mild at this point," said Stephen Adamske, spokesman for U.S. Rep. Barney Frank, D-Mass., the chairman of the House of Representatives Financial Services Committee.

"Some say, 'we will take into consideration the outcome of the votes,'" said Mark Borges at Compensia.

But, "some companies are completely silent, which kind of leads you to wonder if they're going to do anything at all," he said to the Post.