,,ii  #aagth ,,congress  #ast ,session  
,s4 #bade  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #ba1     
#bjba,mr4 ,reed introduced the following
 bill2 which was read twice and referred
 to the ,committee on ,banking1         
,housing1 and ,urban ,affairs  ,a ,,bill
  ,to ensure that irresponsible         
corporate executives1 rather than       
shareholders1 pay fines and penalties4  
#a4 ,short title ,this ,act may be cited
 as the ,corporate ,management          
,accountability ,act of #bjba4  #b4     
,fine1 penalty1 and settlement          
accountability  7a7 ,definitions ,in    
this section-- 7#a7 the term accountable
 executive-- 7,a7 means an individual   
for whom disclosure is required under   
section #bbi4djb7;a77#c7 of title #ag1  
,code of ,federal ,regulations2 and     
7,b7 includes any other employee of a   
reporting company with respect to whom  
the ,commission determines disclosure   
under subsection 7b77#a7 is appropriate2
  7#b7 the term ,commission means the   

,securities and ,exchange ,commission2  
7#c7 the term covered fine or similar   
penalty-- 7,a7 means any amount to which
 section #afb7;f7 of the ,internal      
,revenue ,code of #aihf applies2 and    
7,b7 includes any fine1 penalty1 or     
payment-- 7i7 that is paid or incurred  
by a reporting company2 and  7ii7 with  
respect to which the ,commission        
determines disclosure under subsection  
7b7 should be required2  7#d7 the term  
issuer has the meaning given the term in
 section #c7;a7 of the ,securities      
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#gh;c7a772 and  7#e7 the term reporting 
company means an issuer-- 7,a7 the      
securities of which are registered under
 section #ab of the ,securities         
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#ghl72 or  7,b7 that is required to file
 reports under section #ae7;d7 of the   
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gho7d774  7b7 ,requirement  
,to issue rules ,not later than #cfj    
days after the date of enactment of this

 ,act1 the ,commission shall issue final
 rules to require each reporting        
company1 in each annual report submitted
 under section #ac or section #ae7;d7 of
 the ,securities ,exchange ,act of #aicd
 7#ae ,u4,s4,c4 #ghm1 #gho7d771 or in   
each proxy statement filed pursuant to  
section #ad7;a7 of the ,securities      
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#ghn7a77 for an annual meeting of       
shareholders1 to-- 7#a7 disclose whether
 the reporting company has established  
procedures to recoup from compensation  
paid to1 and to withhold from future    
compensation paid to1 any accountable   
executive all or a portion of the cost  
of any covered fine or similar penalty  
that has been paid or incurred by the   
reporting company2  7#b7 if the         
reporting company has established       
procedures described in paragraph 7#a7--
 7,a7 provide a description of those    
procedures2 and  7,b7 disclose the      
amount that the reporting company has   
recouped from each accountable executive

 under those procedures during each of  
the #c most recent fiscal years2 and    
7#c7 if the reporting company has not   
established procedures described in     
paragraph 7#a71 provide an explanation  
of why the reporting company has not    
done so4