Capito Opposes Govt. Over-Reach Into Private Sector

Press Release

Capito Opposes Govt. Over-Reach Into Private Sector

Rep. Shelley Moore Capito, R-W.Va., opposed legislation today that could lead to federal regulations dictating how West Virginia financial institutions compensate their employees. The legislation, H.R. 3269, would extend government limits on compensation to all firms, even those who did not receive government assistance or bailout funds.

"We are all concerned about the prospect of bailed-out firms providing taxpayer-backed bonuses for their employees," said Capito. "But this legislation sets a dangerous precedent of allowing government regulators to directly interfere into the practices of completely private firms and businesses."

"There are some concepts of this legislation that I support. For example, I am a strong proponent of allowing shareholder's to have a say on the payment packages for top executives of companies in which they invest. After all, these individuals are owners of the company, and if they do not approve of the compensation packages then they should have an opportunity to voice their disapproval."

Capito supported just such a provision during the 110th Congress, when in April of 2007 she voted for H.R. 1257, the Shareholder Vote on Executive Compensation Act. During today's proceedings, Capito supported a substitute that would maintain a share-holder vote on executive compensation.

The primary legislation considered today, however, is far more restrictive and could pose a threat to smaller financial institutions that did not receive government assistance or cause the financial turmoil of recent months.

"We must not over reach by empowering a new regulatory regime that could place onerous restrictions on financial institutions in West Virginia," Capito added. "Smaller institutions did not cause this problem and they do not deserve to pay the price for the poor decisions of others."

Source