James McGovern Democratic Representative

House approves pay curbs

WASHINGTON (Reuters) - Government regulators could prohibit incentive-based pay packages at large U.S. financial institutions that encourage “inappropriate risks” under a bill approved on Friday by the U.S. House of Representatives.

Democratic Representative James McGovern, in floor debate, said executive pay is out of control, even as many Americans struggle to stay in their homes and keep their jobs. “Corporate executives are continuing to give themselves multimillion-dollar pay packages ... The misbehavior in corporate America must come to an end,” McGovern said.

Heading next to the Senate, where its outlook is uncertain, the bill would also give shareholders in public corporations the right to cast annual, nonbinding votes on executive pay, giving them a louder, but largely symbolic “say on pay.”


$2B ‘clunker’ extension

WASHINGTON (Reuters) - The U.S. House of Representatives approved on Friday a $2 billion extension of the “Cash-for-Clunkers” automobile sales incentive program. The Democratic proposal would run through September 30, 2010, and tap funds from an Energy Department loan guarantee program included in the economic stimulus package enacted in February.

An initial $1 billion in funding approved this summer to boost stagnant industry sales has already been exhausted, officials said.

Consumers stormed dealers over the past month to take advantage of federally backed rebates of up to $4,500 on trade-ins of gas guzzlers for more fuel efficient vehicles.