SENATE STANDING COMMITTEE: The Judiciary (UNDER NEW MANAGEMENT)

[Kaine for Senate '18]

Sorry to intrude, but a question: could the GM create scenarios for lawsuits?

[Kaine for Senate '18]

This legislation is intended to prevent CEOs from committing crimes while holding a position of power, retiring, and reaping significant benefits associated with their time in that job.  It's a basic issue of fairness.

[Kaine for Senate '18]

TJ, Clause 2 includes all benefits, including stock options.  It would be as if the CEO had never worked at this company.  And I would happily see it amended to include everyone in a leadership position.

[Kaine for Senate '18]

I meant with regards to Clause 2 because if an option has already been awarded it could be argued that it is part of retirement he has already received before being convicted. Or would this require the executive to pay back retirement from previous years?

I'd argue that will have to be interpreted by a judge.  If the individual is still holding the option, and hasn't profited from it yet, then it is a future benefit and is forfeited.  If it has been awarded, then it can't be touched.

[Kaine for Senate '18]

Senators; I'm curious about this legislation.

Firstly I agree with Senator TJ's concern over intent; 'convicted of a crime related to his tenure' could mean anything; they could be convicted of any manner of misdemeanors relating to their tenure/employment and suffer a penalty which someone lower does not (such as sexual harassment for example which is of course abhorrent but this law could be used to throw the book at a CEO but not someone on the board or in lower management guilty of a similar offence) The wording should reflect the crime which I presume is specifically financial mismanagement.

I would also be wary of the wording of 'forfeit the benefits associated with his position upon departure from the current position' as that contradicts Section 2; some of what has been accrued pension wise will have been from before The person held their current position of CEO.

Your first concern: I think it needs to be amended to not only focus on CEOs; as to the misdemeanor, perhaps an amendment specifying either a felony or changing it to financial mismanagement.  Those both work.

My goal with the last two sections is to prevent a CEO from getting retirement benefits post conviction.  I'll let the more legally minded of my colleagues sort out details, as I wrote this in haste in order to get the idea out.