Corporate Governance Reform and Transparency Act of 2017

Bill 115 hr 4015, also known as the Corporate Governance Reform and Transparency Act of 2017, aims to increase transparency and accountability in corporate governance practices. The bill focuses on improving the relationship between shareholders and corporate boards, as well as enhancing the disclosure of executive compensation and conflicts of interest.

One key provision of the bill is the requirement for public companies to disclose the ratio of CEO pay to median employee pay. This information would provide shareholders with a better understanding of how executive compensation compares to that of the average worker within the company.

Additionally, the bill seeks to strengthen the independence of corporate boards by requiring that the chair of the board be an independent director. This measure is intended to prevent conflicts of interest and ensure that the board is able to effectively oversee the company's management. Furthermore, the bill includes provisions aimed at increasing shareholder engagement and participation in corporate governance. For example, it requires companies to provide shareholders with a non-binding vote on executive compensation packages, known as "say on pay" votes. Overall, the Corporate Governance Reform and Transparency Act of 2017 is designed to promote greater transparency, accountability, and shareholder engagement in corporate governance practices. By enhancing disclosure requirements and strengthening the independence of corporate boards, the bill aims to improve the overall governance of public companies in the United States.