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Executive Compensation Practices and Disclosures.
It would also give shareholders a so-called say on pay, which is a nonbinding vote on executive compensation practices.
"The financial crisis had many significant causes, but executive compensation practices were a significant factor," said Geithner.
"This financial crisis had many significant causes, but executive compensation practices were a contributing factor," Geithner said yesterday.
Macroeconomic trends will likely have an impact on firm performance and companies' balance sheets, raising greater awareness of audit quality concerns and executive compensation practices.
The UK approach, if ultimately implemented as expected, could be a powerful example for US investors seeking to drive change in executive compensation practices.
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"That's very unusual," said Ira T. Kay, the director of the executive compensation practice at Watson Wyatt & Company.
Manan Shah is a partner in the employee benefits and executive compensation practice at Jones Day in New York.
Mr. Kay, 57, heads the executive compensation practice at Watson Wyatt Worldwide, which is one of the country's leading compensation consulting firms.
Laura Thatcher, the head of the executive compensation practice at Alston & Bird, said that his role raised serious questions about government interference in compensation in the private sector.
"The dot-com and new economy companies have rewritten all the rules," said Gary Locke, head of Towers Perrin's executive compensation practice.
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