The House Financial Services Committee approved a bill 40 to 28 on Tuesday that was intended to better align executive compensation to performance, taking the first action on a piece of the Obama administration's financial regulatory reform plan.

The bill would give shareholders a nonbinding vote on compensation, golden parachutes and requires compensation committees to be made up of independent directors.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.