Pelosi on House Passage of Pay for Performance Act: 'A Matter of Simple Fairness'

Pelosi on House Passage of Pay for Performance Act: ‘A Matter of Simple Fairness’

Wednesday, April 1, 2009

Contact:Brendan Daly/Nadeam Elshami, 202-226-7616

Washington, D.C. â€" Speaker Nancy Pelosi released the following statement on the House’s passage of the Pay for Performance Act, which will restrict compensation and bonuses at companies that receive capital infusions from the Treasury. The bill passed by a vote of 247 to 141.

"Today the House took another step toward better protecting the taxpayer with the Pay for Performance Act. This legislation adds new compensation and bonus restrictions to financial institutions that receive direct investments from the Treasury Department and applies these limits regardless of when the company agreed to pay a bonus.

"This is a matter of simple fairness. If American autoworkers are expected to reduce their pay and benefits because the industry is in trouble, then a senior executive at financial institution can forgo a bonus when their company is in dire straits and supported by the taxpayer. Executives at institutions receiving taxpayer funds should be able to abide by the reasonable restrictions on their compensation that are contained in this bill.

"The Pay for Performance Act is the right thing to do for taxpayers and to restore stability and investor confidence in our financial markets, which are essential to our economic recovery."