House votes to restrict Wall Street pay

July 31, 2009 (WASHINGTON) The vote advances the first piece of a broader proposal by President Barack Obama to increase oversight of financial institutions.

The legislation goes farther than Obama wanted by prohibiting large companies from fashioning pay incentives that encourage employees to take financial risks that could threaten the economy or the viability of the institution.

The bill includes other Obama suggestions: It would give shareholders a nonbinding vote on compensation packages and prohibit directors on compensation committees from having a financial relationship with the company and its executives.

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