The money will flow to different parties, with the largest sum, more than $6 billion, serving as compensation for investors like pension funds that experienced losses from mortgage securities sold by JPMorgan, Bear Stearns and Washington Mutual, people briefed on the talks said.
The big ones, like Institutional Shareholder Services and Glass, Lewis & Company, should advise clients to vote against a company's compensation plan or directors who serve on compensation committees unless they receive the full terms of these contracts.
But they warm even more to the idea of their daughters "having an eye to serve without compensation," as Megan says.
The authority was pressured by Attorney General Andrew M. Cuomo this week to scuttle the long-standing perk, which he said violated a law requiring board members to serve without compensation.
Instead, it gives shareholders the right to vote on pay and requires that independent directors from outside of management serve on compensation committees.
The largest sum, more than $6 billion, will serve as compensation for investors like pension funds that suffered losses from mortgage securities sold by JPMorgan, Bear Stearns and Washington Mutual, people briefed on the settlement talks said.
The furor over the free passes began last month when Attorney General Andrew M. Cuomo told the authority that giving out the free E-ZPass tags violated a state law that board members must serve without compensation.
The Bloomberg administration has said that those who serve without compensation on nonprofit boards out of a sense of civic zeal should not have to file a comprehensive document sure as a condition of volunteering.
The issue over the free E-ZPasses began last month when Attorney General Andrew M. Cuomo charged that giving free passes for life to board members violated a law that says they must serve without compensation.
The loss of his E-ZPasses was also prompted by Mr. Cuomo, who told the authority last month that the perks violated a law that board members serve without compensation.
The board will vote on Wednesday on the proposed changes, which were prompted by Attorney General Andrew M. Cuomo, who said last month that the benefits violated a law requiring board members to serve without compensation.
