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Diane Watson on Corporations

Democratic Representative (CA-33)


Voted YES on letting shareholders vote on executive compensation.

Congressional Summary:

Corporate and Financial Institution Compensation Fairness Act: Amends the Securities Exchange Act to require that any proxy for an annual shareholders meeting provide for a separate shareholder vote to approve executive compensation for named executive officers. The shareholder vote shall not be:

  1. binding on the corporation
  2. construed as overruling a board decision, or as creating or implying any additional fiduciary duty by the board; or
  3. construed as restricting or limiting shareholder ability to place executive compensation proposals within proxy materials.

Proponent's argument to vote Yes:Rep. BARNEY FRANK (D, MA-4): The amount of wages is irrelevant to the SEC. What this bill explicitly aims at is the practice whereby people are given bonuses that pay off if the gamble pays off, but don't lose you anything if it doesn't. That is, there is a wide consensus that this incentivizes excessive risk.

Opponent's argument to vote No:Rep. SPENCER BACHUS (R, AL-6): True, the first 6 pages of the bill give the owners, the shareholders, a non-binding vote on the pay of top executives. But then come the next 8 pages, the switch, which gives the regulators the power to decide appropriate compensation for not only just top executives but for all employees of all financial institutions above $1 billion in assets and all without regard for the shareholders' prior approval. So under the guise of empowering shareholders, it is, in fact, the government that is empowered. And, finally, on page 15, the bill designates those same government entities which regulated AIG, Countrywide, and collectively failed to prevent the worst financial calamity since the Great Depression. This bill continues the Democrat majority's tendency to go to the default solution for every problem: create a government bureaucracy to make decisions better left to private citizens and private corporations.

Reference: Say-On-Pay Bill; Bill H.R.3269 ; vote number 2009-H686 on Jul 31, 2009

Voted YES on allowing stockholder voting on executive compensation.

To amend the Securities Exchange Act of 1934 to provide shareholders with an advisory vote on executive compensation [and as part of that process, fully disclosing executive compensation].

Proponents support voting YES because:

We should not deprive the public, the stockholders, from being able to do anything meaningful once they find out about scandalous levels of executive compensation or board compensation. Everyone talks about the corporate board as the remedy. But the board is often a part of the problem, being paid huge amounts of money for showing up once or twice a year at meetings.

Give the stockholders a meaningful remedy. Once you get the mandatory disclosure put in place by previous legislation, we are saying the stockholders should be allowed to have a referendum on that and not have a runaround by the board.

Opponents support voting NO because:

This vote is based on mischaracterization--it is an unnecessary amendment. The opportunity for these kinds of votes already exists within the structure of corporate governance right now. A good company from Georgia, AFLAC, went ahead and already has these nonbinding shareholder votes. But there is a difference between having individuals in the private sector, shareholders and individuals outside of the mandating of government to have it occur and have government come in with its heavy hand and say, this is exactly what you need to do because we know best. Our constituents know better how to act and how to relate to corporations than Washington.

Reference: Shareholder Vote on Executive Compensation Act; Bill H R 1257 ; vote number 2007-244 on Apr 20, 2007

Voted NO on replacing illegal export tax breaks with $140B in new breaks.

Vote to pass a bill that would repeal an export tax break for U.S. manufacturers ruled an illegal trade subsidy by the World Trade Organization, while providing for about $140 billion in new corporate tax cuts. Revenue raising offsets would decrease the cost of the bill to $34.4 billion over 11 years. It would consist of a buyout for tobacco farmers that could not go over $9.6 billion. It also would allow the IRS to hire private collection agencies to get back money from taxpayers, and require individuals who claim a tax deduction for a charitable donation of a vehicle to obtain an independent appraisal of the car.
Reference: American Jobs Creation Act; Bill HR 4520 ; vote number 2004-259 on Jun 17, 2004

Rated 21% by the US COC, indicating an anti-business voting record.

Watson scores 21% by US Chamber of Commerce on business policy

Whether you own a business, represent one, lead a corporate office, or manage an association, the Chamber of Commerce of the United States of AmericaSM provides you with a voice of experience and influence in Washington, D.C., and around the globe.

Our members include businesses of all sizes and sectors—from large Fortune 500 companies to home-based, one-person operations. In fact, 96% of our membership encompasses businesses with fewer than 100 employees.

Mission Statement:

"To advance human progress through an economic, political and social system based on individual freedom, incentive, initiative, opportunity, and responsibility."
The ratings are based on the votes the organization considered most important; the numbers reflect the percentage of time the representative voted the organization's preferred position.
Source: COC website 03n-COC on Dec 31, 2003

2010 Governor, House and Senate candidates on Corporations: Diane Watson on other issues:
CA Gubernatorial:
Arnold Schwarzenegger
CA Senatorial:
Barbara Boxer
Carly Fiorina
Dianne Feinstein
Gail Lightfoot
Tom Campbell

Special elections
in 111th Congress:


GA-9:Deal(R)
Jun.2010:Graves(R)

PA-12:Murtha(D)
May 2010:Critz(D)

HI-1:Abercrombie(D)
May 2010:Djou(R)

FL-19:Wexler(D)
Apr.2010:Deutch(D)

CA-10:Tauscher(D)
Nov.2009:Garamendi(D)

NY-20:McHugh(R)
Nov.2009:Owens(D)

CA-32:Solis(D)
Jul.2009:Chu(D)

IL-5:Emanuel(D)
Apr.2009:Quigley(D)

NY-20:Gillibrand(D)
Mar.2009:Murphy(D)


Senate races in 2010:
AK:Miller(R) vs.McAdams(D)
AL:Shelby(R) vs.Barnes(D)
AR:Lincoln(D) vs.Boozman(R)
AZ:McCain(R) vs.Glassman(D)
CA:Boxer(D) vs.Fiorina(R) vs.Lightfoot(L)
CO:Bennet(D) vs.Buck(R)
CT:Blumenthal(D) vs.McMahon(R)
DE:Coons(D) vs.Castle(R) vs.O`Donnell(R)
FL:Rubio(R) vs.Crist(I) vs.Meek(D) vs.DeCastro(C) vs.Snitker(L) vs.Bradley(V)
GA:Isakson(R) vs.Thurmond(D)
HI:Inouye(D) vs.Cavasso(R)
IA:Grassley(R) vs.Conlin(D)
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NV:Reid(D) vs.Angle(R)
NY6:Schumer(D) vs.Townsend(R)
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OH:Fisher(R) vs.Portman(D) vs.Deaton(C)
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WA:Murray(D) vs.Rossi(R)
WI:Feingold(D) vs.Johnson(D)
WV:Manchin(D) vs.Raese(R)
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Page last updated: Sep 14, 2010