House Financial Services
Committee Chairman Barney Frank released draft executive compensation
legislation Friday meant to discourage excessive risk-taking.

The
bill, which Frank said he hoped to hold a vote on this week, is similar
to legislation the House passed in 2007 and is a priority for the Obama
administration, which floated a version Thursday.

The
legislation would require nonbinding shareholder votes on compensation
and golden parachutes at any public company. Compensation committees
would have to be made up of independent directors. Provisions
pertaining to financial institutions include a requirement to disclose
any incentive-based compensation. Banking regulators would have to
proscribe compensation practices deemed inappropriate or especially
risky.